Forex: AUD/USD breaks down to 8-month lows

As heavy selling from Shanghai Composite continues, nearing -3% loses for the day, and local share markets are in the red overall but Nikkei index that still manages to print some gains above the 11600 points level, AUD/USD is making yet another fresh 8-month low at 1.0116, lowest since mid July last year. The pair trades last at 1.0120, off mentioned lows.

“Market broke relatively easily below 1.0150 and triggered sizeable stops below there and below 1.0140,” says FXWW founder Sean Lee, adding: “With AUD/USD and cable both looking like sell rally propositions, and with USD/CHF and USD/JPY both firmly on bull trends, this USD rally looks like it still has plenty of legs,” Sean concludes. USD index moves above the 82.20 mark, around 5-month highs area, while SP500 futures print fresh session lows, and Gold and Oil show weakness as well.

Immediate support to the downside for AUD/USD lies at recent session/8-month lows at 1.0116, followed by July 12 lows at 1.0096, and Dec 29 2011 lows at 1.0041. To the upside, closest resistance comes at previous session lows 1.0155, followed by Friday/Wednesday's lows at 1.0180, and weekly opening price and Friday's Asian session lows 1.0205.