AUD/USD has been on a steady uptrend, as seen on the 4-hour time frame, but it appears that the rally is slowing down. The pair has formed lower highs from April to May, indicating that sellers are becoming more aggressive.
The pair is still finding support at the .9300 major psychological level and the rising trend line. However, stochastic is indicating selling pressure and a breakdown might still be possible. After all, the recently announced budget cuts and downbeat RBA minutes might be a reason for the Aussie to sell off.
Shorting below .9300 with a stop above the .9400 mark and a target of new lows near .9000 could yield a 3:1 return on risk.
By Kate Curtis from Trader’s Way