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I said that I expect AUDUSD and NZDUSD to weaken and while both are weaker this morning, AUDUSD is significantly so. It has broken the rising channel support put in place since the beginning of the year.

The next objective is a close below 0.9250 which has been an area of support on a number of occasions in April however a close below there and we are surely off to the races. AUDUSD has been weakening since the lofty heights of 104-106 last year and has put in a number of weekly lower lows.

The broken rising channel now confirms 0.9460 as the next lower top and the downside is significant from here. Only a close back inside the rising channel would negate.

Guest post by Gary Corney of www.fxlight.co