AUD/USD at Falling Channel Resistance

Forex Technical Update

AUD/USD 4H chart 2/14/2013 8:48AM EST

Falling channel: I noted price rallying within a falling channel in the last update. I also pointed out that since late January, corrections against the bearish channel have been between 90-100 pips. The latest pullback was about 150 pips. Alas, the pattern of under-100 pip retracement is broken.

Bearish stance: Still, the AUD/USD has a bearish stance with price trading within the falling channel. Furthermore, the 4H RSI is still holding under 60, and therefore shows no loss of bearish momentum.

A strong push above 1.0360, clearing the channel will be needed to neutralize the bearish outlook, and open up the 1.0450-60 area that contains the 4H 200SMA and a previous resistance pivot.

Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.