Australian Dollar is turning weaker against other commodity currencies at the start of the week. AUD/CAD’s fall from 0.9988 resumes today and hits as low as 0.9643 so far. The rejection by 55 day EMA is a sign of near term bearishness. Overall, such decline is seen as correcting whole up trend from 0.8058 to 0.9988. Hence, further fall is expected as long as 0.9795 resistance holds. It should target 0.9247 cluster support, 38.2% retracement of 0.8058 to 0.9988 at 0.9251, to complete the correction.
AUD/NZD’s steep retreat today suggests rejection by 1.0825 resistance. But outlook is less clear than AUD/CAD. Price actions from 1.0415 are seen as the second leg of the whole pattern from 1.0420, which could be quite unpredictable by nature. For now, another rise will be mildly in favor as long as 1.0717 support holds. Break of 1.0840 resistance will extend the rebound from 1.0415 to retest 1.1042 high. However, firm break of 1.0840 could bring deeper decline back to 1.0538 support, or even below.
