The Aussie is losing strength at a rapid rate, seen by the strong divergence between the 21/55 MAC and with the 21/55 to the 5/8 MAC. This could be caused by the continued drop in iron ore prices, the Aussie’s main export, and the contraction with China’s economy. It seems like it has hit support around the WS2 pivot point at 0.7386 for a moment before heading back down towards the long term support at 0.734 created last May. The Stoch. on the 4HR hints to a slight retracement before heading back down again creating a lower low in this downtrend. If there is strong consolidation around this area with a range, even a large range, the down trend could be over. However, USD is gaining some strength with a promising outlook on the economy. I plan to sell after the retracement with a close eye on the possibility of it breaking the WS2 pivot.

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