The AUD/USD is Tumbling: The Top is in ahead of the RBA
The Aussie has been in focus over the last week or two and with good reason.
The Aussie has been in focus over the last week or two and with good reason. As followers of forex markets would know, the AUD/USD has put in some serious red candles over the last few sessions.
It was only days ago that we were suggesting the 81 cent resistance level was looking strong. Come Monday we have to start looking at what there is below 79 cents in the way of support.
The main driver here is also a little unclear. The USD has rebounded, but the AUD/USD was weaker than most of the majors. Perhaps this is just the institutional flows and some big money telling us that the AUD is too high.
There might also be some of those some institutional folk, positioning themselves for a less than stellar RBA meeting which is happening on Tuesday.
AUD to Stabilize
Looking at the technicals, the next key support level hits around 0.7885-0.7900. That should see us bounce, simply because the sheer size of the move is hard to follow-up. However, I am now poised for a bit of stabilization in the week ahead.
Assuming we don’t get a meltdown after the RBA on Tuesday, then I will be looking at the range between 0.7900 and 0.8000 to help the AUD find its feet after the sharp decline.
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