The AUD/USD pair tried to rally during the session on Friday, but like its antipodean cousin, the New Zealand dollar, it failed to hang onto gains. The resulting candle of course formed a shooting star which is obviously a very bearish sign. We believe that if we break down to a fresh new low, this market will fall as low as the 0.85 handle. In fact, we believe that if the Federal Reserve tapers off of quantitative easing, this pair could go as low as 0.80 before that move is said and done. We are fading rallies as they show weakness as well.
Written by FX Empire