AUD sliding lower as risk sentiment sours

The Shanghai composite index has fallen below 2000 (edit) again briefly and is nearing 3 1/2 year lows; the AUD is falling in line with the souring sentiment. Uncertainty out of the EZ isn’t helping matters either.

  • AUD/JPY has fallen back below prior resistance at 84.80 with next support at 84.35:
  • AUD/USD should find initial support near 1.0335:


  1. Sean, actually it has gone below 2000 a couple of times in the past few months. It is bounce off very quickly every time it went below. 2000 is a key key level for this index. It could go to 1800 once breaks.

  2. Sean, I had a weak moment and started to think about abandoning teflonium (AUD/USD) in favor of other risk pairs on the short side. But it is starting to look constructive again. I wonder is it feasible for it to break friday’s lows and go sub 1.03? Or this is just a wishful thinking on my side?

  3. Hi Kirill, certainly possible if the EUR starts tanking which is possible. But we get so many false alarms I think its best not to chase any of these mkts higher or lower

  4. Sean. The key in your comment if EUR starts tanking. That implies that EUR is a better short )))). I have reduced AUD/USD short to 2 lots. If it will start to behave I will add on the next rally and go back to 5 lots. Thanksgiving or not, I still like it on the short side. Have a good one. Will see what tomorrow brings us.

Leave a Reply

Your email address will not be published. Required fields are marked *