Forex: AUD/USD Falls
iNVEZZ (Sydney) 11:15 GTM: The AUD/USD currency pair has taken a serious hit on Tuesday and has now settled at 1.0404/05. This represents a major 22 percent decline from opening levels and a nearly 30 pips off the session’s peak of 1.0432. The slump could be attributed to the exhaustion of the upside move, analysts at ICN.com commented on the subject. ICN.com remains neutral in regard to the pair’s price movements, stating that “we cannot bet on the downside move as the stochastic is approaching oversold areas”.
Prior to the pullback it had been a relatively calm trading session for the pair, stable at levels around 1.0425. But with the pair now dangerously close to the support of 1.0400, new support levels will trigger at 1.0385 and then 1.0330, should the current threshold be breached. The new resistance levels will stand at 1.0440 onto 1.0500.
It should be noted that the current price movement shouldn’t be perceived as evidence for an upcoming down trend. The current support level has not been breached yet and this may indicate that the decline has been a result of a temporary slip for the Aussie rather than a stable downside move.
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