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AUD/USD broke below $0.9800

AUD/USD keeps on moving down, pressured by the increased expectations of QE tapering in the US. One would think an upward correction must follow the sharp 600-pips drop, but the bearish euphoria still continues. The pair broke below $0.9800 and renewed an 11-months low at $0.9730. AUD is now testing the 50-month SMA.

We still remain bearish on the pair. Yesterday’s close below the long-term trend support at $0.9850 opened the way to $0.9570. One should be ready for a bullish retracement, but the price first needs to rebound above the $0.9850 barrier to improve the technical picture. Rebound above $0.9920 would open the way to parity. 

Chart. Daily AUD/USD

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