0.8850 is in the process of being taken out and we’ve broken below support at 0.8888. We’re already in vertigo territory but the bulls still have a couple of points to mount a fightback.
AUD/USD Weekly chart 23 09 2014
There’s support at 0.8770 meeting 2010 the support line next, then the Jan low at 0.8660. Ig they go then the RBA will likely be seeing their favoured 0.8500 coming up rather quickly, with a bit more on top.
It’s not the best idea to get too invested in longs down here and the best play will be to look for a break of the 0.8770 level while watching the 0.8660 level. If that goes too then another short is warranted. Then watch both levels to act as resistance with a stop somewhere above the 2010 line.
I’m got out of my AUD/USD position entirely after the break of 0.90 but have kept my AUD/NZD longs, which I may bail at 1.10 if we get there.
