AUD/USD: Next stop .8050

Congrats to the AUD/USD bears who have cracked a big technical support level at .8645 and will now look to cement their position of strength with a weekly close below this level. Bearish momentum is very strong on all time frames and the next big support level is not until .8050.

There will be intraday trailing stops now above .8650 but they should remain safe unless we get an unexpected announcement. On a more medium-term perspective, I’d suggest .8050/.8850 type range from now until Christmas.

  1. I think the AUDUSD is completing a multi month correction which will bottom sometime over the next few months in the low USD0.80s. The sell off from the mid 90s recently is the last leg in the correction.

    Big picture the USD is in decline as a global currency just like our whole monetary system is due for a major reset that will probably see less tendency for the system to reflate every cycle with more debt. Commodities are likely to occupy an important role in such a financial system.

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