AUDUSD: Trading from the short side is still preferred
|AudUsd reached 0.7575 in Europe but then faded and is closing near the lows of 0.7543, leaving the outlook unchanged.
As before, the downside seems to be the path of least resistance and the immediate support is still at the 0.7535, November low, which will continue to be strong but below which would target Fibo support at around 0.7515 a break of which would then look towards 0.7485 and 0.7460/70 (Rising trend support). As I said before, I suspect the Aud$ is unfolding a bear flag formation and is likely to see continued downside pressure 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 the session high and again at 0.7600/10, at 0.7620 and at 0.7650. I doubt we go close to the top end of this, but if wrong, above here could then revisit the 13 Nov high of 0.7665, above which would then allow room to move towards 0.7675/80 and possibly 0.7695/0.7700.I Preferred Strategy: In the absence of any data, a quiet day might be expected and the outlook remains unchanged. A speech by the RBA Governor Philip Lowe (in early European time)and the RBA’s Nov minutes will be today’s focus.
Sell AudUsd @ 0.7570. SL @ 0.7610, TP @ 0.7475
Economic data highlights will include:
RBA Minutes
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