AUDUSD is looking well bid this morning and I like the looks of shorts into 0.7700
AUDUSD is knocking around the old recent support area that contained the break under 0.7700, and has now formed as resistance.
The 0.7630/50 area contains a fair bit of traffic and a move above will bring 0.7700 back into play. That’s been a S&R area going back over 2 years. The 0.77 area is joined by some other tech too. The 200 dma is at 0.7695 and the 200 H4 ma at 0.7697. Given the strength sitting there, I’m liking the look of shorts into that level, with a stop above the most recent highs around 0.7730. I jobbed the long side when it was support with some success so I’m looking to play the level again.
I’ve also taken a small short here at 0.7642 with a very tight stop above 0.7650, just to job this resistance area. I’m looking for 0.7625 but I’ll play it by ear.
The biggest risk this week for commod currencies is obviously the OPEC meeting, which kicks off on Thursday.