Daily Outlook

AUD/USD has eased back from 0.7500 overnight in sympathy with weak Global Stock markets. Selling has extended to 0.7410 this morning as the ASX200 has fallen over 1%.

Large support is seen at 0.7380 and the fundamental change in the USD outlook and the looming FOMC event next Wednesday should tempt buyers at these levels.

AUD/NZD selling is another source of AUD weakness with commentators once again highlighting the chance of the parity in coming months. AUD/NZD is currently at 1.0425

China Bank Holiday may keep movement contained in the Asian session and focus will turn to European Equities and Oil movements later in the day.

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Trade AUD/NZD intraday: the RSI is oversold Our pivot point is at 1.0470. Our preference:the downside prevails as long as 1.0470 is resistance. Alternative scenario: the upside breakout of 1.0470, would call for 1.0490 and 1.0500. Comment: the RSI is below 30. It could either mean that the pair is in a lasting downtrend or just oversold and therefore bound to retrace (look for bullish divergence in this case). The MACD is below its signal line and negative. The configuration is negative. Moreover, the pair is trading under both its 20 and 50 MAs (respectively at 1.0521 and 1.0601). Supports and resistances: 1.0500 ** 1.0490 * 1.0470 ** 1.0460 1.0436 last 1.0410 1.0390 ** 1.0380 * 1.0370 **

Trade AUD/USD Intraday: the downside prevails. Pivot: 0.7470 Our preference: short positions below 0.7470 with targets @ 0.7380 & 0.7355 in extension. Alternative scenario: above 0.7470 look for further upside with 0.7505 & 0.7545 as targets. Comment: the RSI is bearish and calls for further decline. Supports and resistances: 0.7545 0.7505 0.7470 0.7413 Last 0.7380 0.7355 0.7315