The AUDUSD has been on a tear after breaking through resistance at .9135/40 and trading through the 200 EMA on the daily chart. However, the degree of the move was steep, and a deeper pullback after hitting .9294 could be in the works.
The 30M chart, going back three days, shows Aussies ascent from the low of .9118 to the recently made high. The pair has traded lower through out the day following a descending trend line. The chart also shows a potential head and shoulders pattern, and price action is beginning to break the shoulder line.
There will be support .9240, but a break lower could signal a move to the 50 percent Fibonacci retracement level at .9205. The 20 EMA is looking to converge into the 50 EMA and create a bearish crossover.
These type of breakout patterns can be tricky on lower time frames. If AUDUSD cannot break the current support level, look to tighten stop-losses near .9260 which would put price action back above today’s downtrend.