AUDUSD: A quiet day might be expected

Jim Langlands FX Charts

Preferred Strategy: Aside from some choppy trade after yesterday’s domestic jobs data, the Aud had an uninspiring session confined mostly to a 30 point range below 0.7600.

As before, near term support arrives at 0.7570 (July low), which was also briefly tested yesterday, below which would target Fibo support at around 0.7515. As I said before, I suspect the Aud$ is building a bear flag and is likely to see 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 0.7600/10, at 0.7620 and at 0.7650. I doubt we go close 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.

In the absence of any data, a quiet day might be expected and the outlook remains unchanged.

Sell AudUsd @ 0.7600. SL @ 0.7635, TP @ 0.7515

Economic data highlights will include:

New Motor Vehicle Sales

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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