AUDUSD: Sell @ 0.7735
|The Aud again fell sharply in EU/US trade on Friday, reaching 0.7710 and closing on its lows. A stronger US$ and firm yields, buoyed on the better than expected Industrial Production and Michigan Consumer Sentiment, dragged the Aud lower and it is looking very heavy at the start of the week. Thursday’s Unemployment will be the major local focus this week.
1 hour/4 hour indicators: Turning lower.
Daily Indicators: Turning Neutral
Weekly Indicators: Turning lower?
Preferred Strategy: Although the hourlies are oversold, the 4 hour momentum indicators look increasingly heavy, while the dailies are now tilting lower too. I prefer the downside still, and if correct, below 0.7700/10 would allow a move towards 0.7645, with only minor support at 0.7690 and 0.7670 lying ahead of that. Under there would allow a move to the 100 DMA (0.7615) and to major rising trend support 0.7570, although that may take a while.
On the topside, resistance will be seen at 0.7725/30 and then at 0.7750/55 and 0.7770.
Prefer to sell rallies
Sell AudUsd @ 0.7735. SL @ 0.7775, TP @ 0.7650
Economic data highlights will include:
M: China House Price Index – Feb
T: Australian House Price Index -Q4, RBA Minutes
W:
T: Unemployment – Feb
F:
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