|24 Hour: Prefer to sell rallies||Medium Term: Mildly Bearish.|
The Aud had a choppy session between 0.7865/0.7910, closing towards the lower end, and now waiting on the RBA Governor Lowe, who will appear before the Australian House of Representatives’ Standing Committee on Economics. He will likely reiterate last week’s SOMP Statement and will probably lament the level of the Aud.
The dailies are still pointing lower, and if we get below 0.7865 we should re-test Wednesday’s 0.7855 low, a break of which would then open the way to 0.7835, 0.7800 and eventually 0.7780.
On the topside, 0.7900/15 will again see sellers, above which could then see a quick run back towards 0.7940/45. This seems less likely, but if it happens it would negate the head/shoulders theory and could see a larger short-squeeze back towards 0.7980.
Preferred Strategy: The dailies are looking increasingly negative; so once again, trading from the short side, selling rallies, with a SL above 0.7950 could be a plan for Friday.
Economic data highlights will include:
China Foreign Direct Investment, RBA Governor Lowe Speech
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