The AUD is Breaking Down: How Far Can it Go? - Forex News by FX Leaders

The AUD is Breaking Down: How Far Can it Go?

Posted Tuesday, November 14, 2017 by
Rowan Crosby • 1 min read

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

AUD/USD – 240 min Chart.
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About the author

Rowan Crosby // Asia-Pacific Analyst
Rowan Crosby is a professional futures trader from Sydney, Australia. Rowan has extensive experience trading commodities, bonds and equity futures in the Asian, European and US markets. Rowan holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.
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