AUDUSD: Resistance will be seen at 0.7710 and 0.7725

Jim Langlands FX Charts

The Aud is lower today after Donald Trump’s China announcement, having previously been weighed down by the disappointing domestic jobs data. Having seen an early high of 0.7785, the price action has been choppy but mostly heavy in reaching 0.7686 ahead of a minor bounce to finish at 0.7700.

1 hour/4 hour indicators: Turning higher.

Daily Indicators: Possible basing formation.

Weekly Indicators: Turning lower?

Preferred Strategy: While the momentum indicators are a little mixed, I still prefer the downside overall as I think the US/AU yield differential will eventually weigh on the Aud. China concerns will only add to the risk-off mood. If correct, support today will arrive at 0.7685 and then at 0.7670. Below that would allow a move towards 0.7645, below which would allow a move to the 100 WMA (0.7625) and to major rising trend support 0.7570, although that may take a while.

On the topside, resistance will be seen today at 0.7710 and at 0.7725. Above there could stretch back to 0.7750 and to 0.7785 although this seems doubtful. Selling rallies is preferred.

Sell AudUsd @ 0.7725. SL @ 0.7755, TP @ 0.7670

Economic data highlights will include:

Unemployment – Feb

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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