AUDUSD: Trading from the short side
|After a brief spike to 0.7533, AudUsd is trading heavy after Friday’s NFP figures, currently just holding above 0.7500 but seemingly set to test strong support at 0.7470/80. Below here, unlikely today I think, would allow a run towards 0.7400.
Note that the Chinese November CPI came in at 1.6% on Saturday, slightly below expectations of 1.7%, and may impact on the Aud today.
1 hour/4 hour indicators: Mixed
Daily Indicators: Turning lower
Weekly Indicators: Turning lower
Preferred Strategy: Although the short term momentum indicators are a bit mixed, trading from the short side continues to be the plan ahead of the FOMC Meeting (Wed), when the Fed is expected to hike rates. I therefore suspect that further upside for the Aud will be limited and selling into rallies is still preferred. The 0.7470/80 area will be strong, so taking some profit on shorts and looking to resell into a rally may be a plan.
Sell AudUsd @ 0.7530. SL @ 0.7580, TP @ 0.7475.
Economic data highlights will include:
M: New Home Sales – Oct, China New Loans
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