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The AUD/USD pair fell during the week but managed to stay above the 1.03 level which is a crucial support level in our estimation. The pair looks heavily supported in this general vicinity, and as such we think that a bounce very well could happen. However, if we manage to break down the pair below the lows for the week, this should send the pair searching for parity.
There are Chinese economic numbers over the weekend, and this will more than likely play a significant role in whatever happens with the Australian dollar. Because of this, we think this will be a very news driven currency pair over the next couple sessions, and could be difficult to trade. However, we think that eventually we do fall as the global economy is slowing down by all accounts. We aren't keen on buying this pair, so we are looking for sell signals. This would include a breakdown of the candle as mentioned earlier, or some type of rally that looks weak.