The AUD/USD pair fell on Tuesday as the fears over Europe continue. The former Prime Minister of Greece, Mr. Papademos suggested that the exit risk of Greece out of the European Union was a real threat, and risk related assets fell as a result. Truthfully though, the risk on assets didn’t exactly look overly healthy during the trading day anyhow.
The 0.98 level has been holding the market up lately, but with the recent price action it looks as if a breakdown is only a matter of time. A daily close below that level is a trigger for us to sell. As for buying, we don’t. A rally could also be faded if we get weak action, especially around either the parity or 1.02 levels.
Written by FX Empire