AUD/USD: Long position well and truly obliterated
Another forlorn attempt by me to pick the base in the AUD/USD has come to nothing and the spate of negative events (tumbling iron ore prices, Chinese coal tariffs, dodgy jobs data etc) are all taking their toll on the little Aussie battler. I’m far from a believer in the AUD bear story but it’s best get out of the way whilst they are in charge. The risk-off events affecting the Equity markets have also taken a large toll on AUD/JPY, and many macro long positions have thrown in the towel here also. AUD/JPY does bear (pardon the pun) close watching and the long-term charts suggest to me that a break below 91.00 could lead to another 10 big figure clean-out.
There is a hugely important technical support level in AUD/USD at .8650 and if we break below this level, there will be bull-blood on the streets.