AUD/USD is down 8 weeks in a row, that’s something that didn’t even happen in the crisis. In fact, at no time in the past 20 years has AUD/USD declined for 8 consecutive weeks.
Is a bounce a screaming buy? There is solid support nearby and a rebound is due, even if it’s only modest but the answer is no. If the Fed tapers and adds some hawkish rhetoric the Aussie could fall further. There is nothing saying it couldn’t fall for 9 consecutive weeks.
A better trade? If there is a reason to sell dollars — ahem, no taper — then AUD/USD is primed for one of the largest bounces. Alternatively, if the Fed does taper and AUD/USD doesn’t continue falling, it’s probably hit a short-term bottom.
AUDUSD weekly — 8 declines in a row
