AUDUSD: The initial bids will arrive at 0.7600

Jim Langlands FX Charts

AudUsd remained firm on Friday in heading up from the low of 0.7575, back above 0.7600 and on to a high of 0.7629, closing nearby.

The momentum indicators are now aligning to point higher ,and above Friday’s high would see sellers nearby at the trend high of 0.7635. Beyond here would find offers at 0.7645/50 and further gains could potentially test the strong descending trend resistance levels seen at 0.7695 and eventually at 0.7725.

On the downside, the initial bids will arrive at 0.7600 ahead of Friday’s low of 0.7575 although this seems unlikely to be seen today. If wrong, look for a run towards 0.7560 ahead of the 13 June low/200 DMA at 0.7521/25. This area would be strong if we were to see it, but a downside break would trigger some short term stops and may produce a trip back towards 0.7490/0.7500, below which could revisit 0.7465/70 and even 0.7445/50.

It now looks as though buying dips is the general idea but as we approach 0.7700, demand may begin to diminish and it would not really surprise if the long term triangle formation (weekly chart below) continued to dominate the price action.

Economic data highlights will include:

M: WBC Consumer Survey, New Motor Vehicle Sales (May), China House Price Index (May)

T: House Price Index (Q1), RBA Minutes

W: WBC Leading Economic Index

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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