please find in the following an update for the AUD/USD major pair.
In the previous review for AUD/USD (July 26th 2013) I had indicated the 91.20 as the line in the sand where the correction into the 0.95 area would have been aborted. Yesterday that level was pierced on the downside indicating renewed weakness for the Aussie.
In my opinion the larger target for the current move lower is at 0.85 (please watch the coming weekly review).
Picture: AUD/USD daily timeframe July 30th 2013
It looks like bears front ran the 0.9330 area of resistance having a target in the 0.8840 area. This are is close to the 2nd target of the current daily extension short in this pair, coming around the 0.8910 area.
Our model of Program Trading suggests some profit taking in the 0.8840 to 0.8910 area.
After and if that happens, we cannot exclude a retrace (profit taking of shorts) into the next area of resistance on the daily chart at the 0.9080 area. If bears participate in that area we could see new lows into the 0.8730 area.
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