AUD/USD fell hard on the session for Wednesday as traders have sold off all things related to taking risk. The Aussie is very susceptible to headline risks, and as a result this pair didn’t act well to Italian 10 year bonds yielding over 7% during the European session. The pair fell back to the 1.01 level, and we have this level down to parity as one big support level. The real question now is whether or not it will hold. We think there are far too many headwinds in the economies of the world to take a long in this pair, but the selling of it would be very difficult at this level. With this in mind, we are waiting for a rally to sell, or a daily close below parity to sell.
Written by FX Empire