AUDUSD: Looking to buy dips towards 0.7900/50

Jim Langlands FX Charts

24 Hour: Neutral

Medium Term: Neutral – Possibly look to buy dips.

Having seen a low of 0.7877 in early European trade, the Aud has shot up to a high of 0.8013 following the FOMC meeting, closing at 0.8000.

The short term momentum indicators suggest that a cautious stance is warranted at these levels although the longer term charts still hint that buying dips remains the medium term plan. The weekly charts suggest that at some stage we are in for a stronger test of the topside although the 200 WMA is currently providing strong resistance. A monthly close (Monday) above the 100 MMA (0.7975) would reinforce that view, and once above 0.8015 there is little to stop the Aud from heading to 0.8160.

On the downside, the 100 MMA may act as a near term magnate, below which there is minor support 0.7940 and again at 0.7900, ahead of the minor double bottom at 0.7875.

Preferred Strategy: Looking to buy dips towards 0.7900/50 seems to be the plan, with a SL placed below 0.7875.

Economic data highlights will include:

Import Export Index (Q2)

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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