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AUDUSD : Confirming Break Down After Consolidation

Day before yesterday I wrote in my blog about AUDUSD that the pair is preparing for a decline by consolidating within a symmetrical triangle. Today it broke down from the rising support trend line of the triangle. The drop in the pair came after the Reserve Bank of Australia said that the interest rates should remain low for an extended period of time. Also RBA reiterated that the Australian dollar remained high and thus providing less support in achieving balanced growth in the economy.

(AUDUSD : 4 Hour Chart)

On the 4 Hour chart, the pair found support at .9360 which was earlier also acting as support for the pair. Now as investors are waiting for Yellen Testimony we might see some change after it. So the pair might surge if Yellen delivers dovish tone and decline below current support level if Yellen delivers hawkish tone. The next support pair will find is at .9338.However if the pair rises, next nearest resistance it will find is at .9396.

(AUDUSD : Daily Chart)

On the daily chart, however the pair seems supported by the long term rising support trend line and accordingly the pair might again surge from this support. The pair might continue to surge breaking the resistance at .9458.