AUD/USD at Falling Channel Resistance

AUD/USD 4H chart 2/14/2013 8:48AM EST


Falling channel: I noted price rallying within a falling channel in the last update. I also pointed out that since late January, corrections against the bearish channel have been between 90-100 pips. The latest pullback was about 150 pips. Alas, the pattern of under-100 pip retracement is broken.

Bearish stance: Still, the AUD/USD has a bearish stance with price trading within the falling channel. Furthermore, the 4H RSI is still holding under 60, and therefore shows no loss of bearish momentum.

A strong push above 1.0360, clearing the channel will be needed to neutralize the bearish outlook, and open up the 1.0450-60 area that contains the 4H 200SMA and a previous resistance pivot.

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