According to one of the top-managers of Reserve Bank of Australia, downfall of Australian dollar is yet to be finished despite the fact that AUD was one of the weakest currencies last year. For the last several years it was Australian dollar which dominated over USD but AUD decreased by 15% from its highest level in 2013. Partially it was due to verbal interventions by Central Band of Australia. These were supposed to decrease the value of national currency in order to help exporters who had difficulties selling their goods. What is more, the downfall was because of the fears over Chinese economy and reduction of bond buying program by US Federal Reserve.
Recommendation: open short position with small stakes in case of a breach and definite fixation under the strong intermediate support level of 0.8910 and we suggest to open additional positions in case the pair falls under 0.8860 with a short-term goal of 0.8820 and a long-term goal of 0.8700.
Andrey Batensky