The Australian dollar is under intense pressure from an unfriendly world which looks to be building into a perfect storm for the world’s bellwether growth currency. It has sold down through the support I talked about earlier in the week and remains biased lower.
As you can see in the chart below, it is at a critical juncture right here in Asia today and needs to hold the old uptrend line and down trend line that are intersecting 1.0116 region in order for this cascading fall not to turn into a rout:
I have already explained that the fundamental outlook has turned decidedly unfriendly and my feeling is that the technicals are turning the same way.
Support at 1.0116 (MAJOR), 1.0101 (hourly target- fibo extension), 1.0077, 1.0020/30 (38.2% of the bounce from 0.9388) and then 0.9914 (38.2% of the bounce from 0.9388). It feels like IF this big level on the intersection breaks then the Aussie is in for some serious selling.