Forex: AUD/USD closes below parity for first time since June ‘12

FXstreet.com (Barcelona) - The Aussie continued its decline today, closing down 47 pips at 0.9954. This was the first time the pair has closed below parity since all the way back in June 2012. Economic data out of Australia will be light in the coming session. However, we will see NZD Retail Sales, as well as a very busy European economic release schedule which could also have an influence on future direction.

From a technical perspective, the previous weeks’ close below 1.0110 remains a bearish development and could continue to influence a “sell the rally” type of mentality. The rectangle consolidation which was completed on the weekly chart has a measured move target of down near 0.9600. Furthermore, the weekly chart has also formed a massive ‘pennant’ pattern that has a lower support boundary around 0.9870 (would need a close below here for pattern confirmation). A pattern of this length (started forming in July 2011) is not to be overlooked, and has a longer term measured move target of all the way down near 0.9070.