AUDUSD: Probably remain in the wide 0.7500/0.7750 range

Jim Langlands FX Charts

AudUsd remained heavy for much of the session on Wednesday, falling to a low of 0.7638, not helped by the generally negative risk sentiment or by the 4% selloff in the iron ore price, ahead of a bounce that has seen it recover, to sit at 0.7675 at the end of the US session.

The short term momentum indicators are now mixed, although the 4 hour charts still point sharply lower so if we do head below the session low, then a move towards 0.7620/0.7590 may be possible. Below there looks unlikely today and I am not sure we are going to see 0.7600 given the lack of any data. On the topside, above the session high of 0.7690, resistance will now be seen at 0.7700/15 (minor) and then again at 0.7740/50. I don’t think we are heading back up here for a while now, but if wrong we could then quickly head towards the November high of 0.7777. As I said before, I think we probably remain in the wide 0.7500/0.7750 range for some time to come, and therefore still prefer to trade from the short side, looking to sell somewhere above 0.7700, with a SL placed above 0.7777.

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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