AUDUSD: The 4 hour indicators still look a little toppish

Jim Langlands FX Charts

AudUsd traded up to 0.7844 again on Wednesday, holding its ground and closing on its highs in what has been a fairly tight session. While the short term momentum indicators still look a little toppish, the dailies remain constructive and as elsewhere, the US$ looks set to remain under pressure although with the Aud now having lost its risk premium over the US$ I am wary of buying it at these levels.

1 hour/4 hour indicators: Mixed. — Possible topping formation.

Daily Indicators: Turning higher

Weekly Indicators: Neutral –Turning higher?

Preferred Strategy: The 4 hour indicators still look a little toppish so another move back towards 0.7800/0.7810 would not surprise but buying dips seems to be the plan. Stand aside. Further out, if the US dollar remains weak, a medium term move towards 0.8000 should not be ruled out. The AIG Services Index PMI and the Caixin China Services PMI will provide the initial direction today and a solid reading would allow for a run to take out stops above 0.7850.

Economic data highlights will include:

AIG Services Index PMI, Caixin China Services PMI

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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