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Trading Below Its Channel Base

  • RES 4: 0.7599 High Jul 6
  • RES 3: 0.7534/57 200-dma / 50.0% of the Feb - Aug sell-off
  • RES 2: 0.7432/7471 High Nov 9 / High Nov 4
  • RES 1: 0.7371 High Nov 15
  • PRICE: 0.7249 @ 06:46 GMT Nov 22
  • SUP 1: 0.7227 Low Nov 19
  • SUP 2: 0.7226 Low Oct 6
  • SUP 3: 0.7170 Low Sep 29
  • SUP 4: 0.7106 Low Aug 20 and a major support

AUDUSD has traded below the 0.7255 channel base (drawn from the Aug 20 low) and is trading near recent lows. The breach of its channel base reinforces bearish conditions and signals scope for a deeper short-term pullback. This has opened 0.7170, the Sep 29 low where a break would open 0.7106 further out, the Aug 20 low. Resistance to watch is at 0.7371, Nov 15 high. A break would suggest a base has been established.

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