AUD/USD dip could be nearing its inflection point

After a 3-week rally which stalled around the 64c handle with a shooting star candle, a pullback was almost inevitable. but we have already seen AUD/USD fall for four consecutive days, and recent history shows its bearish streaks tend to max out at five down days. Given support is nearby and the AU-US 2-year yield is rising, I am now seeking a swing low around the 0.62750 - 0.6300 area for at least a minor bounce.

But if the recent swing low on the US dollar index gives way, perhaps something much bigger.

A break above 0.6420 opens up a run to 0.6500.


Matt Simpson, Market Analyst at City Index and Forex.com