AUDUSD: The short term momentum indicators look a little heavy

Jim Langlands FX Charts

The Aud has taken advantage of the positive technicals in reaching a high of 0.7915 after the US Retail Sales but then turned lower as risk sentiment soured, closing the day back at 0.7880.

1 hour/4 hour indicators: Mixed.

Daily Indicators: Turning higher

Weekly Indicators: Turning lower?

Preferred Strategy:

The short term momentum indicators look a little heavy today although the dailies remain constructive and this allows the chance of a return to 0.7900 and 0.7915 in coming sessions. Above there would open the way towards 0.7975 although possibly not yet.

On the downside, support will be seen at 0.7845/50 and again at 0.7820. Further out, 0.7800, 0.7780 and the 7 Mar low of 0.7771 are rather distant targets although this currently seems a long way off.

Economic data highlights will include:

Consumer Inflation Expectations – Mar, New Motor Vehicle Sales – Jan, RBA Bulletin

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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