Posted on March 2, 2015 by the XM Investment Research Desk at 7:33 am GMT
AUDUSD continues its consolidation mode on the daily chart, trapped between the 5-1/2 year low of 0.7625 and 0.7950 – the 61.8 Fibonacci level of the 0.6008 to 1.1078 upleg. Momentum is bearish and the RSI has fallen back down.
The near term bias is to the downside towards the 0.7625 low. A break below this would target the next 78.6 Fibonacci level at 0.7098. To the upside, a break above 0.7950 could see a further recovery to wards 0.8294.
The overall outlook remains bearish and the downtrend from the September 2014 high of 0.9400 remains in progress while the market remains below the Ichimoku cloud.