AUDUSD: Prefer to sell rallies towards 0.7835
| 24 Hour Outlook: Neutral | Medium Term: Neutral |
Preferred 24-hour Strategy: Prefer to sell rallies towards 0.7835. SL @0.7855
The Aud reached a peak of 0.7838 on Monday although decent offers stood in the way of further gains, which would then allow a run beyond the June 2015 high, and it has since drifted back to a low of 0.7791, finishing the day nearby.
The short term momentum indicators are now turning lower to allow some unwinding of their overbought condition although short term support now lies at 0.7790. Back below there could see a return to 0.7775, where the Aud will find decent support although a dovish outlook from today’s RBA Minutes may see that area taken out, allowing for a return towards 0.7750 and to Friday’s low of 0.7725.
On the topside, minor resistance will be seen at 0.7820 ahead of the 0.7838 high, which will be very strong should we see it although that looks doubtful today. However, the longer term charts are looking increasingly positive, and if the Aud does take out 0.7840, then we could open the way for a run towards 0.7900/75 and to 0.8000+.
Economic data highlights will include:
New Motor Vehicle Sales, China House Price Index, RBA Minutes
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.
