AUDUSD: A neutral stance is required

Jim Langlands FX Charts

AudUsd fell back below 0.7500 in Europe and headed to a low of 0.7450 in the US session finishing towards its lows.

Technically, the short term charts now point towards further losses although the dailies still look constructive, so a cautious stance is required.

We really need to hold on to 0.7435/40 today or the Aud could head back towards 0.7400/10 and to the recent lows at 0.7384/88. Below this would open the way to the 12 May low of 0.7366 and 0.7350 (minor), ahead of the stronger 0.7330 level. Back below the 9 May low of 0.7328 would find little to hold the Aud up until 0.7300 and the rising trend support, at 0.7285, although this seems unlikely to be seen for a while.

On the topside, minor resistance will be seen at 0.7480 and at 0.7500 ahead of the 23 May high of 0.7517. Above here would then look for a run towards 0.7540/45 and eventually to 0.7555.

For Friday, a neutral stance is required, although with the positive look of the dailies, buying dips may be the theme. Below 0.7435 though would suggest a deeper decline.

Author

Jim Langlands

FX Charts

Jim Langlands began his trading career in the commodities markets in London in 1976, before moving to Australia in 1979 to work as a floor trader on the Sydney Futures Exchange.

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