AUD/USD suffered a poor GDP read and is pressured to the downside by China in general.
What do the technical levels tell us? Here is the view from SocGen:
Here is their view, courtesy of eFXnews:
Having breached a multiyear upward channel, AUD/USD is now breaking below a steeper descending channel and is currently probing 2006 lows of 0.70/0.6950 which also happens to be a projection for the fifth wave, notes SocGen.
“Daily RSI is holding a support however signs of stabilization will emerge only after the pair is able to break above the descending trend at 0.7270. 0.70/0.6950 is an important level, SocGen adds.
A sustained move below the later, according to SocGen, will mean further correction towards 1999 highs of 0.6750.
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