AUDUSD: The short term momentum indicators look increasingly heavy

Jim Langlands FX Charts

The Aud has fallen sharply in EU/US trade reaching 0.7795 and closing on its lows. A stronger US$ and with the risk mood seemingly souring somewhat, dragged commodities and the Aud lower. Note: RBA Assist Gov Debelle Speech today.

1 hour/4 hour indicators: Turning lower.

Daily Indicators: Turning Neutral

Weekly Indicators: Turning lower?

Preferred Strategy:

The short term momentum indicators look increasingly heavy today although the dailies are flat. I prefer the downside though and if correct, 0.7790 should take a while to break through but below which opens the way to 0.7770/60 which should also be strong. Under there allows a return to 0.7710/15 although possibly not today unless the US data is very strong and sees the US$ run higher on all fronts.

On the topside, resistance will be seen at 0.7825/30 and then at 0.7850 and 0.7865.

Prefer to sell rallies

Sell AudUsd @ 0.7825. SL @ 0.7865, TP @ 0.7725

Economic data highlights will include:

F: RBA Assist Gov Debelle Speech

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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