AUDUSD: Trading from the short side

Jim Langlands FX Charts

AudUsd is trading higher on Tuesday, dragged up by the Kiwi, and is now awaiting the NAB Business Conditions/Confidence and the China Foreign Direct Investment for a directional bias.

1 hour/4 hour indicators: Turning higher

Daily Indicators: Turning lower

Weekly Indicators: Turning lower

Preferred Strategy: Although the short term momentum indicators are still mixed, trading from the short side continues to be the plan ahead of the FOMC Meeting (Wed) although I suspect there may be better levels to do so, given the positive look of the 4 hour charts. I suspect that further upside for the Aud will be limited and selling into rallies is still preferred but we could easily see a run back to the 100 WMA (0.7550) which could act as a magnate over the next 24 hours Beyond there would find sellers at 0.7565/70. On the downside, there will be plenty of work to do at 0.7500, below which, 0.7470/80 area will be strong, so taking some profit on shorts and looking to resell into a rally may be a more medium term plan.

Sell AudUsd @ 0.7565. SL @ 0.7585, TP @ 0.7475.

Economic data highlights will include:

New Home Sales – Oct, NAB Business Conditions/Confidence – Nov, China Foreign Direct Investment – Nov

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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