AUDUSD is flirting with the recent lows
AUDUSD is looking quite interesting as it hovers around the Oct/Nov lows. 0.7625/30 is the line in the sand and a break could mean a swift move down to 0.7600 or worse.
We’ll no doubt see some buying action around the 0.7600 big figure but 0.7570/80 could be more of a level.
As Friday showed us, there’s decent selling into 0.7690/0.7700 and with the 200 dma sitting there too, it’s looking strong up there.
It looks like there’s a good opportunity to trade the 0.7630 level down here. If I was looking at longs, I’d get in close to 0.7630 with a tight stop under 0.7620. For shorts, a break (and confirmation) of 0.7620 would aim for 0.7600. Again a tight stop above 0.7630 or 40 would lower the loss risk from a fake break.
I am tempted by a long down here but it’s looking quite heavy at this moment, so that raises the chances of a downside break.
It’s pretty much the same picture across all the main FX pairs at the moment. We’re testing/breaking these intraday and short-term tehc levels without really going anywhere. Keeping trades on a tight lead and not getting married to, or guessing a direction is the best play right now, as my colleague H also noted earlier.