Currency Updates:
TECHNICALS: The AUD/USD bear trend remains in control but it has been levelling out over the last few sessions. The secondary trend line (see chart) is forming a cap of sorts near .9600 and this must be respected. Support levels start around .9430. Play the edges of this range but the bearish bias remains.
TECHNICALS: The AUD/USD bear trend remains in control but it has been levelling out over the last few sessions. The secondary trend line (see chart) is forming a cap of sorts near .9600 and this must be respected. Support levels start around .9430. Play the edges of this range but the bearish bias remains.
CROSSES: I got stopped out of my long AUD/JPY position at the absolute low yesterday (I know someone must necessarily hit the low but I’d prefer it weren’t me L ). The bear trend is still in control and selling rallies is preferred.
The return of significant EUR/AUD demand was the other big story yesterday and we need to watch this cross closely again.
ORDERS & FLOWS: Sovereign names including some big central banks were noted buyers of AUD/USD yesterday when it broke below .9500. Real money names were also noted buyers but this buying was offset by the AUD selling against the EUR.
INTRADAY CONCLUSION: I’m very indecisive on the AUD/USD in the short-term so I’m tending toward a range-trading strategy between .9430/.9600. I expect a quiet session ahead of tonight’s big risk event but you never know, we could get some last minute flows.
TRADE OF THE DAY: I’m feeling rather uninspired at the moment I’m afraid but the break above 1.3400 in EUR/USD could be significant so perhaps buying intraday dips to 1.3350 with stops below 1.3320 could be a winning strategy.
