In my opinion the larger target for the current move lower is at 0.85 (please watch the coming weekly review).
Picture: AUD/USD daily timeframe July 30th 2013
It looks like bears front ran the 0.9330 area of resistance having a target in the 0.8840 area. This are is close to the 2nd target of the current daily extension short in this pair, coming around the 0.8910 area.
Our model of Program Trading suggests some profit taking in the 0.8840 to 0.8910 area.
After and if that happens, we cannot exclude a retrace (profit taking of shorts) into the next area of resistance on the daily chart at the 0.9080 area. If bears participate in that area we could see new lows into the 0.8730 area.
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