Australian Dollar Falls To 4-Month Low
- The Australian dollar has fallen to trade at 1.0059, just above the 1.0020 session low on fundamental drivers. However, the technical picture isn’t that much better – leaving some speculation that further downside can be expected in the spot rate.
- Specifically, the AUDUSD currency pair has broken through key support of 1.0118, or the 61.8% fibonacci retracement from the 0.9668-1.0843 bull wave. The level stood as the last line of defense for the spot rate, with a penetration below all but securing a likely decline. Any turnaround or momentum for a move higher remains contingent on this level.
- With the Aussie set to decline, short sellers have now shifted their attention to support at 0.9860 or the December 15th session low. The level will be enacted following a confirmed break below the parity level – which still stands as a technical benchmark.
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