AUDUSD: Buying dips remains the medium term plan
|| 24 Hour: Neutral | Medium Term: Neutral – Possibly look to buy dips. |
Having climbed to 0.8065 in Asian trade on Thursday, the Aud has since retreated and is closing just above session lows of 0.7955.
The short term momentum indicators suggest that further minor losses may be in store and the dailies are also beginning to look rather overstretched on the topside. If we do head down, then below 0.7955 would find bids at 0.7930 and at 0.7890/00 ahead of the strong area at 0.7875.
On the other hand, the longer term charts still hint that buying dips remains the medium term plan, and if we head back above 0.8000, the 200 WMA will again provide a hurdle ahead of the 0.8065 high. In the meantime, we may hang around the 100 MMA (0.7975) today, although a monthly close above it (Monday) would reinforce the view of heading higher, and above 0.8065 there is little to stop the Aud from heading to 0.8160.
Preferred Strategy: Neutral.
Economic data highlights will include:
PPI (Q2)
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