AUD crosses sitting right on resistance levels
- AUD/USD technical target looming at .9720 (see chart);
- AUD/JPY has broken above recent highs at 94.40 but is stalling ahead of the 200-dma at 94.70;
- EUR/AUD is sitting right on short-term support levels at 1.4130 (see chart);
- Real-money funds still the main buyers in AUD/USD;
- USD sentiment remains very bearish and risk sentiment is moderately bullish, all good signs for the AUD/USD bulls.
As always, have a read around and see if the same analysts who were bearish on AUD/USD below .90 cents are now turning bullish at .97 cents. This is usually a good indicator of a short-term top. AUD/JPY looks interesting from a risk-reward perspective as long as the 200-DMA continues to cap.
I’m still in the buy-big-dip AUD/USD camp but based on the current set-up, I wouldn’t be at all surprised if we get such a dip.