By: Colin Jessup
The Australian Dollar has been slipping on the Greenback since the beginning of March after climbing to a 6 month high on February 29th. Today's trading saw price action fall to 1.0422, about 420 pips lower, breaking & closing below the Weekly S1 at 1.046 in the process. Since the open of the Asian markets price has retraced to that same Weekly S1, now acting as resistance and also the Daily Pivot level. With a close below the 38.2 retracement level drawn from the December 15 price level it is highly likely that price price action will continue to move lower on the daily chart to the Weekly S2 and the 50% retracement level at 1.0370. If price does continue its bearish trend, look for intermediate support at 1.0390 & 1.042 on the way down to the WS2. If price reverses and starts to climb, look for resistance along the way at 1.0510 with the Weekly Pivot at 1.0600 where price will have to scratch and claw its way back into the zone between 1.060 and 1.080 that contained it for all of February, making it unlikely at this point, but not impossible by any stretch of the imagination.
Happy Trading!
