If you were reading my updates yesterday, you’d know that I am pretty bearish on the Aussie dollar. Yesterday I was wanting to sell a pullback in the AUD, however, it looks like we have continued the decline and there was no such retrace. Fortunately, on Friday the setup was quite similar and there was a great chance to sell the AUD/USD.

Regardless, it looks like we are breaking down further so we need to examine what might play out. If we can hold below the current support level, then we will almost certainly be making another leg lower.

Key Support Level

The next level I’m watching it 0.7581. I think that we will almost certainly test that soon. There are a few hurdles that we have to get through, by way of economic data. We have the ECB Conference today, which features Janet Yellen. That might impact the USD. There’s US CPI on Wednesday and Australian employment on Thursday.

There’s no doubt that we are in a bear trend. I was a bit more keen to sell a retrace towards the 0.7700 level, simply because of the fact that it might have offered some protection for us ahead of the large amount of news. As it stands if we hold below current support, this is a sell for me as well. Just with a note of caution ahead of the big news, we have this week.

AUD/USD – 240 min Chart.