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AUD/USD: Down-Trend Resuming | Technical Analysis 18th December 2013

The aussie is breaking down below the lows of its consolidation pattern, as well as support from the S1 monthly pivot. It is renewing its down-trend and is expected to push lower, reaching the August lows at 0.8846 eventually, if not even lower, to perhaps 0.8800 where the lower channel line of the falling channel will provide support.

According to the structure of the market the 0.8846 lows provide a minimum expectation for the down-wave, which is probably an Elliot 5th wave which began on October 24 when wave 4 ended (wave 1 began in April). Off course it could go lower with 0.8750 providing another target.

Analysis by: Joaquin Montfort AUDUSD - Liga Forex Analyst