AUDUSD: Near term support arrives at 0.7600/10
|Preferred Strategy: The Aud had heavy session because of yesterday’s China data, which generally missed expectation and has weighed on the downside ever since. US$ weakness has allowed the Aud to recover from the session lows but it has remained in a tight range, hovering above 0.7600.
Near term support arrives at 0.7600/10, below which would target 0.7570, and as I said before, I suspect the Aud$ is building a bear flag (see daily chart) and is biding its time ahead of a more sustained test the downside which will eventually take us towards 0.7400. Patience will be required but trading from the short side is still preferred.
On the topside, resistance will be seen at 0.7650 and at the 13 Nov high of 0.7665. Above this would then allow room to move towards 0.7675/80 and possibly 0.7695/0.7700 although I doubt that we actually see it up here today. If wrong, we could be in for a possible squeeze above 0.7700 which could see a run towards 0.7730/40. Doubtful. The Q3 wage price index is a data risk today and if soft, the Aud is likely to trade towards the 0.7600 support.
Sell AudUsd @ 0.7650. SL @ 0.7685, TP @ 0.7580
Economic data highlights will include:
WBC Consumer Confidence, Wage Price Index
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