The AUD/USD will close firmly below the 14 year uptrend line. What’s worse for the AUD currency, we have cleared a major grouping (or cluster) of major Fibonacci levels from the .7100-.7200 level. In my opinion, any rally towards the .7100 level will find a very strong wall of sellers.

There is not much longer term support until the .6200 level, which represents a very strong support level following the financial crisis of 2008.

 

Blake Morrow

Chief Currency Strategist, Wizetrade