The AUD/USD Monthly chart is something I have been watching for a little while. I have been very bearish with many of the Aussie pairs on both a fundamental and technical level for some time, so it is no surprise that the AUD/USD has taken a skydive since July 2014.
Although I don't trade the monthly chart I am cognizant of the approach and then the break and close below the bullish trend line. As price has now broke and closed below .7532 I am looking at the first support level between .6982 and .6772. If price can respect this support level I will then be looking to narrow down an entry point on the lower time frames.
I will be looking to update this post in the coming weeks as price enters this first key support area.
Although this chart was posted in 2015 i am still holding the same analysis. Now we have a break and retest of the historical trendline support and i expect a long term retest of support 2 at .06323
Great long term perspective, good to know. Thanks Tom.
UnknownUnicorn180388
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@duyphuocluong, Thanks very much mate.
moorekapital
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I love the bigger picture perspective you have there. I think that Generally, this is a trendline that should have held price up. Now, regarding the monthly trendline is broken down, two things come to my mind, It's either that the selling pressure far outweighs the buying pressure , and we see a dramatic and continuous selloff, driven by some bad news, or we see a rally that goes to test the Trendline for resistance. Now, I am currently short, and holding to see PRICE ACTION around the obvious last low on the daily = 0.690000 I'll exit my short, and reconsider another trade. Great job, Tom!