AUDUSD: The short term momentum indicators are still looking constructive

Jim Langlands FX Charts

AudUsd took advantage of the risk-on mood and reached 0.9365 in Europe, although having run out of steam there, it then fell to 0.7890 ahead of a recovery to end the day at 0.7935. We now await the RBA Governor Lowe who will be speaking shortly.

1 hour/4 hour indicators: Mixed. Turning higher.

Daily Indicators: Neutral

Weekly Indicators: Neutral

Preferred Strategy: The short term momentum indicators are still looking constructive, today, suggesting a possible return to 0.7965 and possibly on towards 0.7990/0.8000.

The dailies are now rather neutral, giving little hint either way, and I suspect it may be a mostly rangebound session, with the real direction being driven by the US$. If that sees a rally, which looks doubtful, then support for the Aud will arrive at 0.7890/0.7900 ahead of 0.7850 and 0.7825.

Economic data highlights will include:

RBA Governor Lowe Speech, China New Year

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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