The AUD/USD pair fell hard on the Monday session as the “risk off” trade came into vogue. The Americans have been buying up the risk assets after the Asians and Europeans sell them off, but the Monday session saw them ignore them. The parity level has been broken down, and we think this is a massive sign that we will continue to fall. As long as we are below that mark, we think selling a break of lows and rallies as they fail is the best strategy going forward. The market should continue to be punished as the traders are very nervous about the drama unfolding in Europe still. We are not buying at this point as the headline risks are far too great to excuse taking risk on.
Written by FX Empire