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Thread: Discuss the AUD/USD and the NZD/USD with a DailyFX Analyst

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#9 (permalink)

10-21-2008, 05:13 PM

Steve Brown Steve Brown is offline

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AUD/USD

When AUD/USD plunged from 0.84 to 0.64, 2000 pips in eight trading days, reasons cited were the credit freeze and risk aversion. Now that liquidity has improved and risk appetite is returning, an upward correction of the oversold condition of this pair could be reasonably expected. Yet, as I write this, AUD/USD has plunged 300 pips in 24 hours. Is this a head fake, or resumption of the downtrend? If the latter, how low can it go?

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