AUDUSD: Trading from the short side

Jim Langlands FX Charts

AUDUSD: 0.7563

AudUsd is lower on Thursday having traded heavily all day following the volatile price action seen after the release of yesterday’s GDP. Having been unable to regain 0.7600 following the data release, the Aud has traded down to a low of 0.7558. Currently trading just above the lows, the momentum indicators suggest that 0.7550 will be given a nudge, below which would open 0.7530, 0.7515 and possibly the rising trend support at 0.7485.

1 hour/4 hour indicators: Turning lower

Daily Indicators: Up – Turning Neutral?

Weekly Indicators: Turning lower

Preferred Strategy: Trading from the short side continues to be the plan ahead of next week when the Fed is expected to hike rates. I therefore suspect that further upside for the Aud will be limited and selling into rallies is still preferred.

Sell AudUsd @ 0.7585. SL @ 0.7610, TP @ 0.7490

Economic data highlights will include:

AIG Services PMI, Trade Balance, China Foreign Exchange Reserves

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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