AUD/USD Back to 8-month lows

AUD/USD is trading at 0.9649 – 9653, this was last seen in October last year as risk aversion is dominating the markets on weak Euro data from PMI and as the Chinese manufacturing results gets weaker.

According to the currency strategist at daily FX, I.Spivak, In the near term technical studies would signify a rebound. AUD/USD is currently testing the support area at the 76.4% Fibonacci retracement and was the bottom low in late November. The strategist also said that “We will stand aside for now, looking for an upward correction to yield a selling opportunity”, the expert suggested.

As of the moment, the AUD /USD is down with 0.75% which is at 0.96490, about to hit the next support at 0.96210, then 0.95960 followed by 0.95570 and lastly the 0.95180 support.

On the optimistic, a breakout at the 0.97270 resistance will lead it to the 0.9775 (R1), floowed by 0.98030 then 0.98420.