AUD futures: Don’t trust the bullish outside day candle

Omkar Godbole FXStreet Contributor

The preliminary AUD futures data for July 7 published by the CME shows a drop in the Open Interest by 1547 contracts, which indicates the bullish move in the AUD/USD pair was largely due to withdrawal of liquidity/unwinding of shorts following a repeated failure to cut through support around 0.7570 levels.

AUD/USD daily chart shows Friday’s candle was a bullish outside day formation, which indicates the sell-off from the recent high of 0.7712 may have run out of steam. However, the drop in the Open Interest warrants caution.

Options activity signals buyers are buying cheap insurance against downside move

The Open Interest (OI) in the Out-of-the-Money (OTM) puts rose by 1620 contacts as opposed to 1058 additions in the (OTM) calls. Meanwhile, OI in In-the-Money (ITM) calls fell by 24 contracts, while the OI in the ITM puts witnessed an addition of 90 contacts.

This adds credence to the drop in the futures OI and suggests the traders are buying cheap insurance against a potential drop in the AUD/USD pair.

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Slightly Bullish	Neutral	High
1H	Slightly Bullish	Neutral	Low
4H	Bullish	Neutral	Low
1D	Bearish	Neutral	High
1W	Bearish	Neutral	Low
Updated Jul 10, 03:00 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.