AUD/USD fell again for the Thursday session as the risk appetite continues to crumble. With the massive issues going on in Europe, there is little in the way of traders wanting to bet on the health of the global economy in the near term. This will hurt the Aussie as it is the biggest “risk on, risk off” currency at the moment. The idea that the global slowdown will hit China as well is starting to gain traction, and as a result they will buy less Australian exports.
On a break of the lows from the Wednesday hammer, we are ready to continue selling. Buying this pair is absolutely off limits for us as the move has been far too strong to the downside. As long as there are risks out there, this pair should continue to fall. It is worth noting that the previous bearish daily flag suggested a move to 0.96, something that isn’t that unbelievable at the moment.
Written by FX Empire