Aussie came lower as expected and already we have weakened to 7620...Now this was our break point....and currently we are holding..therefore unless we see a break of 7620 there is scope for a short term recovery...Do not expect much on the topside, a move to 7683/7698 should be enough to ease short term oversold conditions...
Now we would expect sellers in at these higher levels...Hold shorts unless above 7730..If above 7730 look for 7760/65...
Now below 7620 and sellers will jump on the back of this and they should push us lower to 7560 which held previous attempt...Therefore cover shorts just prior this support..Attempt small longs...looking for the market to Double Base, but get out of longs if we break below 7540 as this will negate the base pattern, leaving Aussie on a slippery slope down to 7500 initially then 7451...
Obviously the weekly charts look a tad dire, and there is a monthly trendline coming in at 7055 from lows posted in 2001 and 2008....so there is no reason technically why Aussie cannot go to these lower levels...
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