AUD/USD: Edging into fresh long position
- EUR/AUD is bearish to my eye and will head back below 1.3000 in coming months;
- AUD/JPY looks technically very oversold on short-term charts;
- AUD/USD has fallen from above 1.00 to below .80 on the back of supposed tightening US monetary policy which still hasn’t happened. Even if/when it does, will it be a case of sell-rumour-buy-fact?
- Yes commodity prices have fallen sharply but the AUD is one of only a few remaining long-term ‘store of value’ options when it comes to currencies.
Obviously these are all quite macro factors, barring perhaps the AUD/JPY technicals, and who’s to say that AUD/USD won’t fall to .75 cents and EUR/USD below parity? As always there is an element of risk with picking the right entry level and the right timing, but I’m starting small and will build if I get lucky on these fronts.