The Aussie has seen a substantial removal of liquidity off its trend highs as buyers pulled the plug out of its trend-trading mentality as the rate adjusts to worsened fundamentals following a dismal Australian GDP in Q3. The daily cycle remains bullish
, and I must say that the volume
on the way down has been far from impressive, partly due to the close on markets in NY. The next level where a cluster of bids is expected can be found at the 0.7250, where the origin of a strong demand candle meets with an ascending trendline
in the daily (major confluence). The Aussie may continue to flounder near term, vindicated by risk-off and weaker fundamentals, but technically wise, and as we know, the Aussie is a very technical-oriented pair to trade, any level below the 0.7250 area does offer some pristine levels to potentially be a buyer. Just be aware that the sentiment is very negative at present time.