AUD/USD: Building fresh short position
I went short on Friday night and I will be looking to build a strong position over the coming weeks.
AUD/USD: The wedge on the weekly chart is the relevant pattern here in my view and if a top forms now below 1.0620 I feel there is scope for a sharp move lower as we near the end of the year. The RBA will lower rates by 50bps in this period, the Chinese economy continues to stutter, and the RBA has shown that it’s willing to sell AUD/USD (albeit on the quiet).
Putting technical and fundamental reasoning together gives me an excellent risk-reward trade. I’ve entered with a medium-sized position and will look to build this over the coming weeks. If I’m right, we will trade a 1.0250/1.0550 in coming days but the bearish pressure should start to take over control. I still feel that .9000 is achievable if some panic selling sets in in thinner Christmas markets (but I’ll settle for a bit less 🙂 ).