Recently the Australian dollar has suffered a sharp decline due to various local fundamentals. On the one hand, the Reserve Bank of Australia governor Glenn Stevens said there is still room to cut interest rates and the currency may depreciate further. On the other hand, a sharp drop in building permits in June, which reveals a possible economic crisis in a country traditionally solid. Now this pair looks weaker. We could try to buy at the 0.9048 support area, the second weekly support with a tight stop loss below the minimum so far, 0.8990. A close below the psychological level 0.90 opens the door to a new wave base, which could take the pair up to 0.86. Therefore, we recommend the following strategy because the Momentum Indicator is around trend support of the MACD.
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