AUDUSD: Trading from the short side

Jim Langlands FX Charts

After a brief spike to 0.7533, AudUsd is trading heavy after Friday’s NFP figures, currently just holding above 0.7500 but seemingly set to test strong support at 0.7470/80. Below here, unlikely today I think, would allow a run towards 0.7400.

Note that the Chinese November CPI came in at 1.6% on Saturday, slightly below expectations of 1.7%, and may impact on the Aud today.

1 hour/4 hour indicators: Mixed

Daily Indicators: Turning lower

Weekly Indicators: Turning lower

Preferred Strategy: Although the short term momentum indicators are a bit mixed, trading from the short side continues to be the plan ahead of the FOMC Meeting (Wed), 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. The 0.7470/80 area will be strong, so taking some profit on shorts and looking to resell into a rally may be a plan.

Sell AudUsd @ 0.7530. SL @ 0.7580, TP @ 0.7475.

Economic data highlights will include:

M: New Home Sales – Oct, China New Loans

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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