AUDUSD broke below the rising trend line

Franco Shao from ForexCycle.com at 01/13/10

 

AUDUSD broke below the rising trend line on 4-hour chart, suggesting that a short term cycle top is being formed on 4-hour chart. Range trading between 0.9123 and 0.9325 is expected. As long as 0.9123 support holds, we’d expect uptrend from 0.8734 to continue and one more rise towards 0.9404 (Nov 16, 2009 high) is still possible. However, a break below 0.9123 will indicate that the rise from 0.8734 has completed, then deeper decline could be seen to 0.9000 or even 0.8850.