AUDUSD: The dailies seem to be running out of steam on the topside
Preferred Strategy: After an early move up to 0.7881 on Friday, the Aud remained heavy into the rest of the session and closed just above the day’s lows of 0.7808, placed under pressure as the US$ & Treasury yields rallied broadly. Having been looking positive, the dailies now seem to be running out of steam on the topside, and with the short term momentum indicators also looking heavy at test of 0.7800 and lower seems imminent. Below 0.7800, the next targets would be 0.7770 and the 0.7732. On the topside, resistance will be seen right here, at 0.7820, above which could squeeze towards 0.7850 and even back to 0.7880 although this looks rather doubtful.
Sell AudUsd @ 0.7835. SL @ 0.7860, TP @ 0.7735.
Economic data highlights will include:
M: RBA Annual Report, China House Price Index
T:
W: Australian CPI (Q3)
T: Australian Import/Export Index (Q3)
F: Australian PPI
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.
