The AUD/USD is sliding sharply after a bullish correction the first half of November. The latest US GDP data is helping from a USD-strength stand point, but the AUD/USD was already bearish without the USD story.
AUD/USD is falling without much help of a strong USD. It has affirmed a bearish continuation signal earlier in the month, but it has now extended another leg lower, into a 4-year low. At this point, we should expect resistance around 0.8575-0.86, then 0.8650 on a pullback. There is downside risk toward 2010’s lows, one at 0.8315, then at 0.8066. We might expect AUD/USD to stabilize in this area in 2015, but for now, the market is bearish and we should expect sellers on rallies – as long as price is holding below 0.88. Above 0.88, we might have shifted to a sideways market.
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