What was Aussie minor support just got more significant

  

Yesterday an attempt by the AUDUSD pair to break through what was then a fairly minor level of support in Technical Analysis terms did not happen. In the process, the minor support has now been reinforced to become a more significant barrier, simply by virtue of the failure of the rate to break through it. In addition, a channel has now formed, between the levels of 0.932 and 0.9136.

The major trend is still down, and the expectations are that the Reserve Bank of Australia (RBA) will further cut the cash rate sometime in the future, if not next month. The situation in China, which impacts greatly on the Australian economy, is still one of consolidation at best.

The bias on this pair is still very much to the short side.