AUDUSD Technical Analysis for May 21, 2013

The AUDUSD is making a consolidation after a sharp drop.

The aussie is forming a higher low pattern very clear in the daily chart and that was expected, because this pair is literally in free fall from the level of 1.0350. Now, the AUDUSD is moving in a range between 0.9828 and 0.9709, very crucial levels that could determine the trend for the rest of the week in this pair. If the AUDUSD breaks the support at the 0.9709 level is expected to continue to fall to the level 0.9600 and for that reason, we would recommend keeping the sell orders in this pair. On the other hand, if the AUDUSD breaks the resistance level 0.9828, is expected to return to parity at 1.0000 level in the medium term, which is unlikely due to the weakness that has the aussie and bad economic data that have been published in recent days and has a negative impact in the Australian economy.

The MACD indicator is in negative territory but showing extreme oversold levels in this pair and therefore, I recommend just waiting for the right AUDUSD breaking any of the above levels.

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