We have been a bit surprised by the weakness of the antipodean (Aussie and Kiwi) currencies this week. The Aussie has been under intense pressure, loosing more than 600 pips from the beginning of the week.
Yesterday, the AUD/USD has accelerated its decline breaking through its rising trendline starting in March to trade near 1,04. Next target is given by the 200 mving average at 1,03.
Despite the intense bearish pressure, we thing though that we should see a technical bounce soon as the long term trend remains bullish.
In any case, we consider that something happened this week and the pair might be on the verge of a major reversal considering a double top formation on the weekly chart. A break below 1,0390 would confirm the reversal structure.
Last Wednesday, we pubblished a trading opportunity on the GBP/AUD to take advantage of the AUD weakness and it worked perfectly nearly reaching our 400 pips objective !