It was a volatile week in the market but the overall moves were small. The best trade to have made at the end of last week was selling AUD/USD. The pair had a cumulative decline of 1.2% and fell by as much as 150 pips.
I have have been talking about AUD/USD shorts since the beginning of the month and the weekly chart suggests more losses are in store.
The fall below the 61.8% retracement and the close below the 100-week moving average are both continuing negative signals. Momentum indicators are approaching oversold levels but they’re not there yet.
Support at parity is the best thing the Australian dollar has going for it but the market has been selling bounces all the way down and I expect the same thing in the 1.0100/25 range.
