Forex: AUD/USD has formed a major top and eyes 0.8265 - Commerzbank

Tue, Feb 9 2010, 10:58 GMT
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FXstreet.com (Barcelona) - The Aussie has been retreating from 0.9300 area on Jan 10, reaching levels below 0.8600 on early February, and according to Karen Jones, technical analyst at Commerzbank the downtrend seems likely to continue to June's high at 0.8265.

The Aussie formed a significant top at 0.9400 area in November and the pair is currently heading south, targeting 0.8383 and 0. 8265, according to Jones: "AUD/USD formed a significant top over the past few months and targets the .8383 61.8% Fibonacci retracement of the 2008 drop as well as the .8265 June peak."

On the upside, resistance area at 0.8906/45 will cap rallies, if reached, says Jones: "Above it (0.8735 December low) is the more important .8906/45 resistance area (November lows) which should initiate failure though, if at all reached that is."

AUD/USD

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