AUD/USD: Potential Short-Term Base in Place
AUD/USD has successfully tested its recent low at 0.8893. The test of its previous peak at 0.8979 (29/08/2013 high) suggests a potential short-term double-bottom with an implied short-term upside at 0.9065. Monitor the hourly resistance at 0.8997 (intraday high). Another resistance stands at 0.9070.
In the longer-term, the break of the strong support at 0.9388 (04/10/2011 low) opens the way for a further medium-term decline, whose potential downside risk lies near the key support at 0.8067 (28/05/2010 low). However, we keep in mind that if the key resistance at 0.9345 were to be broken, we would have to reassess our outlook.