The Australian dollar has fallen faster than I anticipated when I wrote this morning’s weekly update. Indeed it has already crashed through two of the support levels I identified in this mornings piece. The concerns over MF Global and the massive MOF intervention into USD/JPY which has pushed the Yen 5% lower have certainly accelerated the pace of declines.
With this in mind I thought it important to post a quick technical update as the Aussie is now nearing very important support in the 1.0480/90 region.
Traders should keep an eye on this 1.0480 region as it would be natural for it to attract buying because it represents key uptrendchannel support for the entirety of this month’s rally and a break into month end, tonight, would seriously challenge any bullish hypotheses, as well as threaten a move back toward the start of last weeks run up at 1.0320/25. But as I always say, it hasn’t broken till its broken.