AUD/USD is in “grave danger”?
AUD/USD didn’t manage to rise above $0.9655 today and slid below $0.9600. Aussie was affected by weaker than expected Australian GDP and the yen buying. Australian index S&P/ASX200 closed at the minimal level since the end of January.
There’s an article in the Wall Street Journal saying that AUD faces “grave danger”. According to an Australian broker, “Australian dollar has been one of the most obvious bubbles in the financial world… this Australian dollar correction will get disorderly.” Many major investment banks, including Goldman Sachs and UBS, are increasingly confident the Aussie remains a sell.
For now trading on H4 chart remains more or less sideways. Aussie approached support at $0.9550 and $0.9528. A break below $0.9528 (low May 29) would expose $0.9487 (Oct. 5, 2011, low) and $0.9387 (Oct. 4, 2011, low). Resistance is at $0.9600/15, $0.9660, $0.9700 and at other levels marked on the chart.
Chart. H4 AUD/USD