AUD/USD fell hard after the Fed's announcement and gloomy outlook on the global economy. The pair is rapidly approaching the parity level, and we expect this will be the site of a massive battle now. The pair bounced the last time it hit parity, but the high it made was much lower than the previous one. Because of this, the AUD looks weak, and could be sold if we close below the 0.99 level on the daily chart.
EUR/AUD is presently in the middle of an inverse head-and-shoulders at the 1.35 level. The pair is a battle between two weak currencies at the moment, and as such we will be watching this with great interest. If the AUD/USD falls below parity we could see this pair melt up. Based upon the measurement of the inverse head and shoulders, we see a potential target of 1.40 if it takes off.
Create a FREE account