11.10.2016 - We forecast a drop of AUD/USD to 0.7450 and below
The price of the Australian dollar has shown a sharp drop after failed to gain a foothold below the level of 0.7600. This fact confirms the sell signal with the first target at 0.6450, after overcoming of which we can see a further reduction of quotations to 0.7250 and 0.7000. In case of rebound, quotations may return to an inclined line of resistance, but its overcoming is unlikely. Our medium-term outlook remains negative and we recommend to open short positions with a stop above 0.7700.