The Aud broke down to a low of 0.7587 in early European trade, before a decent bounce to 0.7654 as risk assets came back into favour, before finishing the day at 0.7635, sitting right at the top of the daily cloud.
The 4 hour and daily momentum indicators now look mixed so a neutral stance is required today but the dailies still look heavy, so a move back towards support at 0.7590 may be possible in the days ahead. If we head below 0.7590 we may then see a drop towards 0.7550/60, which should act as strong support. On the topside, back above the session high of 0.7654 would then open the way back towards 0.7665/75 and then towards 0.7690/00. Stronger resistance would then be seen at 0.7700/15 and then again at 0.7740/50. Selling rallies remains the preferred trade although I would keep stops tight above 0.7680.
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