The AUD/USD pair fell on Wednesday as the risk off trade can back into play. The pair stopped falling at the 61.8% Fibonacci level. The 200 day EMA is above the pair now, and we are watching this pair with great interest now. The bottom of the descending channel is being tested, and we could see a bounce from here. Because of that, we feel a break below the lows on Wednesday would signal much more selling in this pair. We also think that the channel is proving too strong for the bulls. We are willing to fade a rally to the top of the channel as well, on signs of weakness. We aren’t selling this pair yet, but could be very soon.
Written by FX Empire