Despite a weak USD over the last few weeks, the AUD/USD has been continuing its downward path.

When we see a currency like the AUD that continues to be weak, despite what we might consider a bullish factor, that is saying something.

I suspect that should the USD find some footing – like it did on Tuesday – then we might be in for a strong move lower in the Aussie.

Key Levels

0.7650 is a pretty big support level and for now, it is the one that is holding the most interest to me on a long-term basis.

I’m targeting a move to 0.7500, however, I want to assess the risk/reward effectively.

I think we will see some chop above 0.7650. If we can break out below then I will be looking to sell a pullback, slightly below that level.

With a target of 0.7500 and a stop around 0.7700. Of course, we have to break out first and that will be very much based on what the USD is going to do over the course of the week.

AUD/USD – 240 min Chart.