Forex: AUD/USD pauses the bleeding above 1.0240

AUD/USD has tumbled Wednesday more than -1.23% from peak to bottom, last at 1.0260, down -0.43% for the week so far. The pair chases gold and equities, that suffered massive sell offs following latest FOMC meeting minutes, in which was indicated stimulus policies may come to an end. Aussie went straight from a double weekly high at 1.0368 printed by late Asian session yesterday, to fresh weekly lows by late NY at 1.0237, without any significant retracement.

According to Valeria Bednarik, Chief Analyst at Fxstreet.com, AUD/USD is “Extremely oversold in the short term,” she says, noting “technical indicators point for an upward corrective movement, although price holds steady near the lows. Buying is not an option even against the trend: approaches to the 1.0270 area if correction actually takes place, should be taken as selling opportunities, as well as an acceleration below 1.0225, past week low,” the analyst suggests.

The analyst finds support levels at: 1.0225, 1.0190 and 1.0160, while resistance levels at: 1.0270, 1.0300 and 10330.