AUD/USD: Break below 1.0140 is significant; .9600 here we come!

After a period of sideways trade it would seem that the market has now an unequivocal decision and has turned bearish on the AUD/USD. This market reminds me in many ways of how cable was trading in recent months, endless sideways movement before finally turning lower.

I’d put a target of .9600 on the downside now and any rallies back towards 1.0250 initially will attract plenty of resistance. Be patient, there will always be some relief rallies to sell into rather than chasing lower and handing easy profits to the big-selling hedge funds.