The AUD/USD pair fell after initially trying to rally during the session on Wednesday. Once word got out that the Federal Reserve was looking at cutting back on quantitative easing by the end of the year, the US dollar exploded in value. This was especially telling after Mr. Bernanke suggested that by the middle of next year, the Federal Reserve expected to be out of quantitative easing altogether. Because of this, this market that had already been week has absolutely fallen apart. The 0.93 handle of course was a significant support level as shown by the hammer from last week, and now we’ve broken below that, we expect this market to make a move down towards the 0.90 handle.
Written by FX Empire