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.
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