AUD/USD tests 0.8700/0.8662

AUD/USD has already crossed the monthly S1 at 0.8764, and it is presently attempting to breach the next support area at 0.8700/0.8662. If this bearish tendency persists, then the currency pair could soon approach the down-trend support line that acted as a strong resistance line during the last two months of 2013. Accordingly, there is potential for it to provide the Aussie with the bullish momentum the currency has been lacking since mid-January.

SWFX market participants do not seem to be discouraged by continuous debasement of the Australian Dollar at all—most (74%) of them reckon that the currency is oversold and is about to start paring losses.