The AUD/USD pair fell precipitously during the Wednesday session as we continue to bounce around the 1.04 level. The markets took a serious “risk off” attitude during the session on Wednesday, and as usual the Australian dollar suffered for it. As long as the markets are so nervous and there is serious concern about whether or not the Americans can get a fiscal deal done, the Australian dollar will more than likely suffer over time as people will not be willing to take risks going forward.
The weekly candle from last week formed a beautiful shooting star right where you’d want to see it at 1.04, and as a result we could be seeing the beginning of a real fall in this currency pair. If we continue lower, and break the lows from the Wednesday session, we believe that we will eventually aim for the 1.02 level. As for buying, we need to see a breakout above 1.05 in order to think that resistance has been broken.
Written by FX Empire