AUDUSD: Risks Shift Lower with Prod Below .6873/7

Hi there traders, this is Steve Miley for forextraders.com and here we’re looking at the Australian dollar against the US dollar. AUDUSD on a short term, day trade outlook.

Well the market’s broken previously down through this up trend-line that comes up from the middle of October and then further deterioration over the last 24 hours has pushed through some modest supports in here in the 0.6873/71 level and then that leaves downside pressures very much intact.

The small topping pattern in here leaving negative pressures. We’re looking for a push down maybe to and through this 0.6858 level towards 0.6845 into today, maybe even a deeper move lower.

Only down through 0.6806 is a possibility, maybe, going into the end of the week. Only down through here would shift the intermediate term outlook to more neutral.

On the upside, really, the markets are going to have to clear all the way back up through 0.6907/08 to actually shift the tone back to more bullish. So short term risk in here going into Thursday to the downside for the Australian dollar verses the US dollar.

This has been Steve Miley for forextraders.com.

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