AUD/USD made a new low on the year last week, and then has been in a bullish correction. As we wrap up the week, the pair is in a bearish continuation attempt as it threatens to break below some key support levels. Let’s take a look at the price action on the charts.
After a rally form the low of 0.8540 to 0.8764 – near the highs last week – AUD/USD is now threatening to break below the week-long consolidation pattern. The better than expected US retail sales data did help the pair crack the support, but it needs to clear below 0.8650 to open up the 0.86 and 0.8540 lows. If price pushes above 0.8720 however, it would signal further consolidation, with upside risk to the 0.8764 high and possibly toward the 0.88 handle as well.
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