AUDUSD: Looks a little mixed at the start of the week

Jim Langlands FX Charts

The Aud ran up to 0.7809 on Friday, but then turned lower as bear pressure set in once NY opened, as the US$ picked up a bid tone in early trade before the stock market slide bought about some AudJpy selling, causing AudUsd to end the week at 0.7760- towards the lows of the day.

1 hour/4 hour indicators: Turning lower

Daily Indicators: Turning higher

Weekly Indicators: Neutral

Preferred Strategy: The Aud looks a little mixed at the start of the week, with the dailies looking quite positive, while the short term momentum indicators look heavy, and the long upper wick on Fridays candle hint that a top might be in place.

If the positive look from the dailies prevails, then we could be in for another run to 0.7785 and back to 0.7800/10, above which could see a run towards 0.7850 and then to 0.7900.

If we head back below 0.7750/45 today, further support would arrive at 0.7735 and 0.7720 below which could revisit 0.7705/95 (10 April low – 0.7693) although this currently seems unlikely. Further out, the Aud has found a medium term base in the 0.7645/50 range (9 April low – 0.7651), and this needs to be taken out in order to allow further downside progress towards the next major level, at 100 WMA (0.7625). Below this would then move towards the major rising trend support from January 2016, at 0.7590, although that may take a while.

Sell AudUsd @ 0.7810. SL @ 0.7845, TP @ 0.7700

Economic data highlights will include:

M: New Motor Vehicle Sales – Jan

T: RBA Minutes, China Retail Sales, Industrial Production, GDP-Q1, NBA Press Conference

W: WBC Leading Index

T: NAB Business Confidence/Conditions – Q1, Australian Unemployment

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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