What you need to know about the technical picture for AUD/USD……

audusd_fx27jun05_to_21nov15

-The trend is down.

-Parity has been the big psychological ‘line in the sand’ for several years now.
-The breakdown below 0.95/97 in March 2013 was a major development. We saw broken support become resistance on the pullback late last year, and it’s been downhill since then.
-In the short-term, a break of the ‘A-B’ trend line could project a rally back to resistance at $.95/97. (Also, it’s not clear on the chart above, but a bullish inverse head and shoulders pattern has formed since the start of the year.)
-Any decline below .87 on a weekly closing basis would bring .80 into play.
-I expect the long-term trend to eventually reassert itself, for a decline to support at 0.80.