AUD,NZD/FXWW News/Trade Ideas

AUD/USD: Look for short-term choppiness .9035/75

I’ve started to increase my AUD/USD long position again, just in case a base starts to form above .9000/35. There is chatter in the market about good-sized bids near .9000 and prices have based on two occasions now near .9035. The AUD is getting some support from the crosses as well, with AUD/NZD trying to form a double-bottom and the AUD also trying to form an interim base against the JPY, EUR and GBP.

Nevertheless the down-trend is very strong indeed so keep stops tight if attempting to catch the falling knife!

  1. Hi Sean,

    How about short EUR/AUD? We could see more funds unwinding their long position in this pair as the EUR looks increasingly unattractive after the last ECB meeting. Given the rapid rally, a drop to 1.32 in the next few weeks wouldn’t be unrealistic. I think one reason why the AUD and NZD will recover is that focus is shifting to the ECB and BoE, as they surprised the market with their dovish comments. While the short $A trade is crowded, market positioning are neutral for both the Euro and the Sterling and will make it easier for participants to initiate large short positions and benefit from the FED taper. – Cheers

  2. Good evening Sean,

    Nice to see that you have increased your AUD/USD long. For now, I am struggling to have some trade ideas :

    EUR/AUD : double top
    EUR/GBP : looks bullish (weekly close above 0.8600)
    EUR/JPY : bullish trend

    The leading indicator could be EUR/USD at 1.2800 ??

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