AUD/USD Chart – Downtrend intact (for now)

AUDUSD has been in a continous downtrend since late October. Yesterday it broke through the bottom of the downtrend channel at 0.9800, opening up the sub 0.9400 target, the early October lows.  Given the overall risk environment and equity markets performance whose correlation remains high AUDUSD, a decent trade would be to short AUDUSD here with a 0.9380 target with a 10 trading day view. Any 1-2 day bounce towards the break zone of 0.9850/0.9900 could also be used as entry or as leverage on the trade. The main risks present themselves in form of oversold conditions and waning momentum given the continously fresh lows made in the market. Stops should be at or above the downtrend channel at 1.0040.