AUD/USD 1H Chart 7/23/2012 8:50AM EDT
The AUD/USD broke below a sharply rising channel on Friday (7/20), and has not looked back. The 1H chart shows a market crossing below the 200-hour SMA, with the RSI staying below 30, reflecting strong bearish momentum in the near-term, although it might be just a tad oversold.
The 4H chart shows that the next support could be near the 1.0180 area, where the market would likely come up against a rising trendline from a recent channel, that started towards the end of June. Below that the 1.0150 area is also a support pivot.
Also note that if we get a pullback in the 7/23 US session, we should look out for resistance just under 1.0330, where we had resistance during the beginning of July.
To the downside, if the market breaks below the rising trendline and the 1.0150 pivot, the AUD/USD is likely on its way to the parity level, which is not only a psychological support, but a previous resistance pivot during early June, that would be tested as a support pivot this time around.
AUD/USD 4H Chart 7/23/2012 8:53 AM EDT