The AUD/USD pair initially fell during the open on Thursday, but then rallied to test the 0.70 level. We still think there is more than enough resistance above to keep this market down though, so we don’t have any real interest in buying. We think that an exhaustive candle could be an opportunity to start selling, especially if we can remain below the previous uptrend line that is marked on this chart. We have still quite a few concerns coming out of China, and as the Australian dollar is used as a proxy for that economy, we expect more weakness.
