The poor old aussie dollar is on the ropes again and edging towards the fabled RBA 0.85 target.
We’ve had another look at the 50 fib of the 2008 swing from 0.6009 at 0.8544 and have been through by 20 odd pips.
AUD/USD Weekly chart 25 11 2014
Just under here is the Oct 2011 support line at 0.8465 and from there we’ve potentially got a big drop down to the late June/early July 2010 lows at 0.8315.
At the moment we’re pivoting on the 50 fib and if it holds below then we’re likely to see it become stronger resistance. Above there the failure to hold 0.8600/05 will make it resistance also and we may see some just ahead of there at 0.8570/80
AUD/USD M15 chart 25 11 2014
The last couple of months has seen the pair ranging fairly tightly and it’s looking like we’re having a go at breaking that range. Watch the 2011 support line closely as that could contain the move lower and force us back into the range.
