AUDUSD: Looks as though it may remain underpinned

Jim Langlands FX Charts

Yesterday’s RBA Minutes, despite not saying much that we did not already know, were the catalyst for the Aud to head lower through the session, reaching 0.7533 before a minor bounce to 0.7560 into the US close.

The charts are mixed, and a fairly neutral stance is currently required. While the 4 hour charts still point lower, the dailies still appear to be mildly constructive and therefore, for the coming session, the Aud looks as though it may remain underpinned, with support levels again seen in place at the 200 DMA/100 DMA (0.7550/20), ahead of 0.7500. Below there would allow a run back to 0.7470, albeit probably not today.

On the topside, resistance will be seen at the session high of 0.7595, ahead of 0.7610, but above which would allow a run towards 0.7640/50. I think we should be looking for a range-trade today, something like 0.7520/0.7595.

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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