AUD/USD: Back to test important levels near .9270
The price action around this .9270 level has been quite bullish in recent weeks and when we look at the big moves in the EUR, GBP and JPY against the USD, it goes to show that something significant must be happening if this level can hold. That said, there will be plenty of stops below here and they will get heavier below .9230 I’m thinking.
I’m sticking with my buy-big-dip policy but I’ve been patient so far and will try to remain so.
On the day, I think buying near .9270 with a tight stop below .9250 makes sense, but I’d also keep profit targets reasonably tight near .9320.
Bears might consider a more aggressive policy if support levels break, but .9200 should prove a tough nut to crack.