The Australian Dollar was strong going into the weekend, but completely reversed this week. Let’s take a look at the AUD/USD, AUD/JPY, and AUD/NZD charts and see what this means from a technical perspective.
The AUD/USD has broken a key support for a multi-month consolidation at 0.92. It has also cleared the 200-day SMA and the 38.2% retracement level putting pressure on the 50% and 61.8% retracement of this year’s rally. The weekly chart adds to the bearish outlook which puts the 2014-low of 0.8660 in sight. The AUD/JPY is reversing a bullish outlook, but we might want to consider possible buyers when price dips into the 96.00-96.50 area which was the resistance of a multi-month consolidation. The AUD/NZD has also been building a bullish scenario, but the current decline might test the price bottom made in 2014. If the market is indeed turning bullish, we should find buyers in the 1.09-1.10 area.
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