AUDUSD: Looking to buy dips towards 0.7900/50
|| 24 Hour: Neutral | Medium Term: Neutral – Possibly look to buy dips. |
Having seen a low of 0.7877 in early European trade, the Aud has shot up to a high of 0.8013 following the FOMC meeting, closing at 0.8000.
The short term momentum indicators suggest that a cautious stance is warranted at these levels although the longer term charts still hint that buying dips remains the medium term plan. The weekly charts suggest that at some stage we are in for a stronger test of the topside although the 200 WMA is currently providing strong resistance. A monthly close (Monday) above the 100 MMA (0.7975) would reinforce that view, and once above 0.8015 there is little to stop the Aud from heading to 0.8160.
On the downside, the 100 MMA may act as a near term magnate, below which there is minor support 0.7940 and again at 0.7900, ahead of the minor double bottom at 0.7875.
Preferred Strategy: Looking to buy dips towards 0.7900/50 seems to be the plan, with a SL placed below 0.7875.
Economic data highlights will include:
Import Export Index (Q2)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.