AUD staying very weak across the board; look to crosses for intraday hints

  • AUD/NZD looks to have begun its next leg lower after breaking below 1.1735; next target 1.1500. This pair is very unlikely to fall in a straight line so look to trade 1.1500/1.1750 in coming sessions.
  • AUD/USD has closed back below .9100 and Australian importers were noted sellers when this level broke yesterday afternoon. I’d expect to see sideways-weakness in coming sessions.
  • EUR/AUD is knocking on 1.4400 weekly resistance again, and this despite some heavy selling by macro funds earlier in the week.
  • AUD/JPY has also reversed recent gains and we need to watch important support at 89.50.

The US is on holiday later today and they will probably turn it into a long weekend so I’m expecting a few quieter days in the FX market.

It’s hard to guess what the trading ranges will be in the AUD/USD so I prefer to watch the crosses for hints as to intraday moves.

  1. Well I should have listened to my gut and stayed with shorty on aud/jpy. Was short at 92.30 but closed out prior to bed at 92.10. I wake up and see its sitting at initial target was 91.50 but closed out way early. Oh well. Still made a little something. The daily chart for the pair is quite interesting. Look at the last 3 days. Up big, indecision, big down day. What is the market telling us? I haven’t the foggiest clue.

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