The AUD/USD fell on Monday as the global “risk off” trade came back in full force. With lack of risk appetite, the pair was always doomed to fall. The bounce that we saw last week was certainly overbought, and as a result this move isn’t totally unexpected.
The pair slammed into the 1.03 area, and turned at that point. The area features clusters of sell orders from previous down moves, and should continue to be resistive. The fall in the AUD/USD looks like it will continue over the longer term as well, and we like selling rallies at this point.
Written by FX Empire