The AUD/USD pair fell hard on Friday as the “risk off” attitude came back into the markets because of the continuing drama unfolding in the European Union. The Aussie is highly correlated to global growth, and there seems to be a serious fear that we are going to see massive slowing. The Reserve Bank of Australia has recently cut by 50 basis points, and it looks as if it may cut again in the near future. With this being said, we are selling a break of the lows from Friday as the broken shooting star lows would signal continuation. Buying isn’t a thought until we close above the 1.02 level.
Written by FX Empire