FX.co ★ AUD/USD Around the Principal Trend Line , Janaury 14, 2011 (Daily Strategy)

AUD/USD

A look on the pair's technical picture shows that the downwards movement has been braked by the strong support of the main trend line on the pair, which has accompanied it since the beginning of 2010.

That said, we estimate that there is a serious likelihood that the pair will still breach the trend line and complete the wave of downwards movement all the way down to the 0.9700 support level and possibly even further, towards the meaningful low around 0.9525. A descent that deep would create an attractive opportunity for a buy on the pair on low prices in order to return with a new wave of upwards movements towards the resistance and equilibrium level of 1.0000 United States dollars for one Australian dollar.