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Forex pairs in this Article » AUD/USD (Barcelona) - The AUDUSD ruthless selling observed in the past 2 days of trading, taking the spot rate to its lowest level in 3 weeks, has come to a temporary pause ahead of 1.04. Not much volatility is expected through Asia hours though, with the Australian markets closed today.

Nearer term Aussie outlook is shared by David Solin, partner at FXA: "The pair is currently breaking below key support at the bullish trendline/base of the potential wedge that has been forming over the last few months (currently at 1.0415/30)."

"These are seen as reversal patterns that often resolve rapidly, and raises the potential for a sharp decline back to the Oct low at 1.0150 and even below ahead. Also, the sell signal on daily macd (at bottom of daily chart) adds to this bearish view" he adds.

David tips immediate support at 1.0350/75 (Dec 26th low and 50% from 1.0150), with resistance at 1.0415/30, broken trendline.
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