AUD/USD is lowing ground, falling from the previous range around 0.9650 down below the critical line of 0.9580, which was the June 2012 low.
The background for the fall is the month end mania: fund managers are scrambling to readjust their portfolios towards the last day of the month. Together with some normal Friday scrambling, market volatility is high.
After the Aussie lost so much of its value during the month of May, the end of month reaction should have been a recovery of the A$. However, this could have already been completed, with the move to the double top of 0.97.
The pair fell as low as 0.9565 before ticking a bit higher to 0.9576 at the time of writing.
Below 0.9580, support is found at the new low of 0.9527 seen earlier in the week. Below, the really big support line is 0.9388, which was the swing low back in 2011.
Weak resistance is found at around 0.9650, followed by much more serious resistance at the round number of 0.97.
For more lines and events, see the AUD to USD forecast.
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