Chinese slowdown was the trigger for more dollar gains that advances firmly against most rivals this Thursday. Market mood is also being affected by a positive outcome in Spaniard bond auction that turned to be quite positive, which will likely push local government to delay bailout request. But AUD/USD took the worst, losing over 100 pips already today trading below 1.0425, neckline of a H&S figure clear in the 4 hours chart. With 200 pips height, the figure target is around 1.0220, as long as price remains capped by mentioned 1.0425.
The 4 hours chart shows price attempting an upward correction after bottoming at 1.0366 today, while technical readings support more slides, as 20 SMA holds a strong bearish slope above current price while indicators hold in negative territory. For the short term, below 1.0365 next bearish target comes at 1.0330 ahead of 1.0290 area, while a steady recovery above 1.0430 may see price attempting to retest 1.0470; a daily close around this last, will invalidate the figure.View Live Chart for AUD/USD