Forex Flash: AUD/USD could incur range flip and break lower – ANZ

FXstreet.com (Barcelona) - The technical bias has been that AUD/USD formed a structural top in 2011, from which a prolonged, corrective consolidation pattern is still forming. According to Tom Riddell, Head of Global Markets Research at ANZ, “Persistent failure to sustain levels above 1.06 confirmed both range resistance and the broader corrective patterns. For the past ten months, AUD/USD has been contained within an effective 1.01-1.06 range.”

In addition and in more immediate terms, “The current break below 1.0100 could trigger a measured “range flip” and thus a potential retest of the early 2012 low (0.9580-0.9600). Such a range-flip slide will provide further credence to the formation of long-term consolidation patterns off the 2011 high (of 1.1080-85).” he adds.