AUDUSD: Near term support arrives at 0.7616
|Preferred Strategy: The Aud had a heavy session in taking out the previous double bottom and trading down to 0.7616 ahead of a mild bounce although the technicals look heavy heading into Tuesday trade, when the NAB Business Conditions/Confidence and the China Retail Sales/Industrial Production will provide further guidance.
Near term support arrives at 0.7616 and again at 0.7600 below which would target 0.7570. 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 session 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. If wrong, we could be in for a possible squeeze above 0.7700 which could see a run towards 0.7730/40. Doubtful.
Sell AudUsd @ 0.7650. SL @ 0.7685, TP @ 0.7580
Economic data highlights will include:
NAB Business Conditions/Confidence, China Retail Sales, Industrial Production, Urban Investment
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