AUD/USD 18 March 2011
For much of this year the Aussie has been hovering around and bouncing off parity producing a very choppy market. Using late Decembers highs with early Januarys lows we can see a triangle pattern has formed on the pair. The market finally broke out of this 2 ½ month triangle to the low side earlier this week, also breaking though parity quite comfortably making new 2011 lows. We’re starting to pull back and would expect resistance to show itself at parity or the lower trend line of the triangle.
Although some distance away a break below November 2010 lows would suggest the bears are back in control of this market. It is more likely we see a pull back towards parity before any push lower.
Lower timeframes are showing little price action.
We can see the triangle pattern has also formed very well on the weekly charts supporting the daily chart outlook.