The dynamic drop in AUDUSD, which lasted from Tuesday, caused the price of the pair to fall below the low from September 11. Currently, Aussie is the lowest since February 2016 and there is no indication that it should stop falling. Is it reasonable to open a short position? Or maybe it’s better to wait at least for an upward correction?
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On October 2, after a dynamic decline, Aussie stopped at support at 0.7170, but not for long. A day later, it was defeated, on the four-hour chart pair just started to draw the tenth candle in a row. There is no clear support in the immediate area, because the price has not been so low for a long time.
The nearest support may be a figure 0.7000. These areas will be defended by bulls. It is difficult to decide to enter a short position, because after such a series of drops we should expect an upward correction. Perhaps the price will come to around 0.7150-70, if there is a rebound in this area, you can enter the short. I recommend opening the position with the Naga Markets broker, which offers great spreads on currency pairs.
