AUDUSD: The downside will find minor support at 0.7550

Jim Langlands FX Charts

AudUsd lifted sharply in Europe’s morning on RBA Governor Lowe’s comment that the next rate move is likely to be up, reaching 0.7590 before settling the US session at 0.7575.

The Aud has actually made a key day reversal after making a new trend low at 0.7531 and if we do head higher, back above the session high will find the next resistance at 0.7605/10, at 0.7620 and at 0.7640. I doubt we go close to the top end of this today, but if wrong, a break of the trend resistance could then revisit the 13 Nov high of 0.7665, above which would then allow room to move towards 0.7675/80 and possibly 0.7695/0.7700.

The downside will find minor support at 0.7550 ahead of the stronger 0.7530/35, area, which will continue to be strong, but below which would target Fibo support at around 0.7515, a break of which would then look towards 0.7485 and 0.7460/70 (Rising trend support).

Preferred Strategy: In the absence of any major data, a quiet day while waiting on the FOMC Minutes late in the day.

Sell AudUsd @ 0.7600. SL @ 0.7645, TP @ 0.7535

Economic data highlights will include:

WBC Leading Economic Index, Construction Work Don

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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