AUDUSD and NZDUSD action may lead to bearish breakout opportunities later this week.
The AUDUSD has broken the trendline that extends off of the October and December lows. More importantly, price has traded below the January 2nd low (although it should be noted that the low is in question since FX is an OTC market). The December low at 10344 should be used as the ‘real’ breakdown level.
The NZDUSD is the big loser today, also having broken trendline support (December and January lows). The 61.8% retracement of the rally from 8155, is potential support at 8271 and 8323 (former support) is now resistance.
--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com
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Jamie is the author of Sentiment in the Forex Market.