AUD/USD: The market is in the process of retracing the major drop off from the post-float record highs at 1.1080, with the price pushing back to the 50% fib retrace off of the 1.1080-0.9925 move by 1.0500 thus far. While there is certainly the possibility that gains will stall out somewhere in the 1.0500’s around the 50% fib, we suspect that the greater probability is for continued gains back towards a major confluence of resistance in the mid-1.0600’s, which comes in the form of the 20/50/100-Day SMAs and the 61.8% fib retrace off of the 1.1080-0.9925 move. Overall however we contend that any gains are corrective and would be looking for opportunities to sell. Our strategy would be to look to sell on a break back below 1.0350 or on a rally up towards 1.0650.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
If you wish to receive Joel's reports in a more timely fashion, e-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it and you will be added to the "distribution" list.
If you wish to discuss this topic or any other feel free to visit our Forum page
DailyFX provides forex news on the economic reports and political events that influence the currency market.
Learn currency trading with a free practice account and charts from FXCM.