We have been a bit surprised by the weakness of the antipodean (Aussie and Kiwi). The Aussie has been under intense pressure, loosing more than 600 pips in a single week.
The AUD/USD has broken below its weekly 20 moving average and is now carving out a double top formation which of course needs to be confirmed.
The pressure on the US Dollar going forward might help the pair to start a meaningful corrective move maybe towards 1,07.
Despite a possible bounce, we think that the Aussie will remain under pressure over the coming weeks. In this event, the parity might be tested. It is too soon though to talk about a major reversal.
Provided by atf-forex-trading.com