AUD/USD jumped during the early European session on the back of the expectations that Spain will not need a full sovereign bailout at this stage. The break above 1.0370 offers saw the hunting of short term stops and trailing stops from positions that have been running for over a week. 1.0400 offers provided little resistance as Moody’s announced that they are looking to downgrade the USA AAA credit rating if fiscal tightening wasn’t actioned later this year. 1.0450 was to be the top during the late US morning and since then the price action has been limited with the price falling back to 1.0428 to close out the day. We are looking for early morning Australian Importers to move the price a little lower towards 1.0400 before the real direction is set in play. Only minor local data and Thursday FOMC should keep a lid on any major movements for the next couple of days. We can’t see the price getting above last night’s highs today and will sell with stop losses above last night’s highs.
|3rd Support||2nd Support||1st Support||SPOT||1st Resistance||2nd Resistance||3rd Resistance|