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The Australian dollar was hit hard by the RBA, twice. But it is not only the fundamentals that tend to point lower for the A$. Also the technical level could provide a clear bearish signal, but this depends on one more move. Here is the explanation by the team at SocGen.

Here is their view, courtesy of eFXnews:

A definite close in AUD/USD below double bottom confirmation level at 0.7330 will be needed to signal a further down move towards the next support  levels at 0.7260, 0.7150/0.71 and 0.7060, notes SocGen Techs.

AUDUSD hourly chart May 2016

“Short term, it achieved an intermittent target (0.7830). With diverging daily indicators, a consolidation lower is not ruled out. 0.7330 is medium term support.

For those who might consider shorts, SocGen tips 0.74 as a possible stop.  

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