AUDUSD: Possibly looking to buy dips towards 0.7875
| 24 Hour: Neutral | Medium Term: Neutral – Possibly look to buy dips. |
Preferred Strategy: Rangebound. Possibly looking to buy dips towards 0.7875. SL sub 0.7830.
The Aud took a hit from the RBA’s Debelle on Friday, with his dovish comments sending the Aud down to 0.7875 ahead of a slow and choppy recovery, to finish the week at 0.7915. The momentum indicators look mixed at the start of the new week and a cautious stance is warranted although the longer term charts still hint that buying dips remains the longer term plan, with the weeklies particularly suggesting that at some stage we are in for a test of 0.8000+.
The short term momentum indicators look less positive, and if we do head lower today then below 0.7900 the initial support will arrive at Friday’s low, ahead of the chance of a drop to 0.7830 and possibly back to 0.7800 although this looks unlikely at this stage.
On the topside, resistance will be seen at 0.7935 (minor) and then at 0.7955/60 above which could see a move back to the 0.7988 trend high. Above here could then see a run towards 0.8000 and then to 0.8015 although I don’t think we are going there today.
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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.
