The AUD/USD pair attempted to rally on Friday, but was turned away at the 1.03 level again for the second time in 48 hours. The candle shaped is a shooting star, and it is at the bottom of the previous consolidation area.
This suggests to us that we will see some type of breakdown in this market. If we can close below the 1.02 level, we think that this pair continues much lower, perhaps as low as the 0.97 handle.
With the Reserve Bank of Australia looking to cut rates a couple times between now and the end of winter, there is a good chance that the Australian dollar continues to lose its luster. The one thing that will keep the Australian dollar somewhat bullion is the fact that the gold markets are in such a bullish attitude.
Written by FX Empire