AUD/USD: Looking to sell into 1.0435/40 resistance
Nice strong bounce after the market got heavily oversold but there is strong technical resistance (trendline and Fibo, see chart) looming around 1.0435/40. Friday’s data out of China was moderately positive (at least good enough to set off short covering) but the weekend industrial output data was less than stellar. Watch for today’s Chinese trade data to introduce more volatility.
I will try selling a failure at technical resistance with a tight stop-loss order. EUR/AUD is consolidating recent gains and still looks strong but with the EUR/USD looking a tad toppy in short-term, any further gains in the cross are more likely to come from the AUD leg imho.