AUDUSD has paused its decline and is consolidating near a 4-year low of 0.8105 hit on December 17. Any bounce higher would see immediate resistance at the tenkan-sen line at 0.8239. As long as the market remains below 0.8500, the bearish bias is strong.
A break back below 0.8105 would target the May 2010 low of 0.8064 and below this there is scope to reach the 61.8% Fibonacci level of 0.7948 of the upleg from 0.6008 to 1.1078.
The underlying trend is bearish as AUDUSD has been making lower highs and lower lows since falling from a peak of 0.9400. RSI is in bearish territory below 50. Also the market is below the Ichimoku cloud on the daily, weekly and monthly charts – which highlight the bearish outlook.