AUD/USD: .7850 still key short-term level topside

There is talk in the market of a short-term exotic option structure which is corralling prices between .7750 and .7850. This is easier to do during the Chinese New Year holiday when turnover is lower. I expect this structure to roll off today and I’m hoping that the first move will be higher. I’m still sitting on my long position and will initially reduce on any rallies towards .7950.