AUDUSD: Sell @ 0.7670

Jim Langlands FX Charts

AudUsd is trading lower after reaching high of 0.7694 in Europe on Friday, where the 200 DMA halted further progress. Now at 0.7640, the short term momentum indicators are turning lower so further downside may lie ahead today. Watch for the MYEOF which may create some exaggerated volatility.

1 hour/4 hour indicators: Turning lower

Daily Indicators: Turning higher?

Weekly Indicators: Turning lower

Preferred Strategy: The short term indicators are now pointing lower, and a run back towards 0.7620/30 would not surprise, below which would allow a run back to 0.7600 and possibly to 0.7575/80. The dailies still currently look positive but as I said previously, now that US rates are at parity with Australian rates I do not really think that the Aud has too much upside from here, and I would be looking for levels to sell into strength.

Resistance today lies at 0.7665/70

Sell AudUsd @ 0.7670. SL @ 0.7705, TP @ 0.7580

Economic data highlights will include:

M: MYEFO, New Motor Vehicle Sales, China House Price Index

T: WBC Leading Economic Index, RBA Minutes, RBA Bulletin

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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