Nick Nasad
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AUD/USD: Aussie Back on Warpath Towards 0.85

The AUD/USD has been sinking like a stone since its poor employment report. On a Friday its always good to zoom out and look at the longer-term picture as we complete another week, so let's do that with this pair.

It's a fairly simple analysis if we look at the weekly chart. This pair had been unable to crack below the 0.88 level back in mid-2013 and again in December. However, this week, the pair finally managed to do so, and it could mean a push down towards 0.85 - the target that the RBA has said it wants to see in the AUD/USD. With another rate cut now possible because of the softer employment picture, the AUD shorts have come out with renewed vigor.

Heck, why don't we have a look at the monthly chart so we can see some price action to the left of the chart that is below our current price and we can try and map out some possible support levels if the Aussie does continue its descent.

As the monthly chart shows, the first level where we can run into some orders are likely clustered around the 0.86 level, but what's interesting is if the pair overshoots the 0.85 "unofficial RBA target' then we could have the pair fall as low as 0.8080 before it meets the next key pivot. Sure, its a long term outlook, but as we can see from earlier in the year (the plunge from 1.05 to 0.90), the moves can play out fairly dramatically.