The AUD/USD pair fell again on Wednesday as the commodity trade stalled on the whole. The Aussie always tends to benefit from the commodity trade, and as it falls – so does the Aussie dollar. The area below is a major one though, so we are now starting to look for signs that the uptrend could continue.
The 1.04 level was the level that served as resistance for a massive ascending triangle previously, and as such we need to see support at the level. The 50% Fibonacci retracement level is just below it, so this should only serve to offer a bit of a backstop as well. In this environment, we need to see what happens at 1.04, and then trade accordingly. If it gives way, the down move could accelerate. If not, we should bounce.
Written by FX Empire