AUD/USD Breaks 200-Day Moving Average Support
February 3, 2013 6:37 am GMT+0 in Chart Alert
AUD/USD had jumped up after an attempt to test 200-day moving support but had broken below that key support once again.
AUD/USD daily chart
The recent history of break below 200-day moving average indicate that the pair has been failing to drop considerably after some of the previous breaks of this support. The points which are making the possibilities high for a considerable drop this time are as follows:
1) 4th failed attempt of a break over 1.0624 and then the subsequent fall.
2) The effort of recovery after the initial recent break of 200-day moving average found strong resistance near 55-day EMA.
Review of previous breaks
Any break below 1.0345 will break the pattern of the subsequent lows getting higher for AUD/USD and any break below 1.0287 will come as the confirmation. In case this happens then we can expect some much deeper declines.