Aussie Breaks Yearly Lows – Did It just Resume the Downtrend? July 31

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AUDUSD – Takes Out Yearly Lows
The wrath of Soros continues on the Aussie as negative homebuilders data + potential rate cut come = bad days for Aussie. The pair today broke the key big figure at 9000 today, along with the yearly lows. Intraday price action charts show the pair pulling right back up to this level, then selling off another 70 pips in a few hours, confirming it as a role reversal level (a level wherein it was once treated as support, now treated as resistance).

This selling off the role reversal level confirms the sellers used this as a nice opportunity to get short, thus the downtrend should resume. 8858 and 8775 become downside targets (Aug. 3, 2010 lows) while corrective pullbacks towards the big figure at 9000 become resistance and potential sell entries. A daily close above 9000 and follow up gains would negate this bearish bias.

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