The AUD/USD pair fell hard during the session on Wednesday as the commodity markets in general have taken a beating. It should also be noted that the Reserve Bank of Australia looks likely to continue to cut rates, and as such we think that the Australian dollar will continue to suffer.
The 1.02 level has become obvious support, and a bit of an inflection point in this market. If we managed to get too far below that level, we think this market will make a beeline for the parity level. As for buying this market, we are certainly at the right spot but only if we get that supportive candle that will be needed. Until that happens, we definitely favor the downside as the Wednesday session closed at the lows.
Written by FX Empire