AUD/USD: Looks set to test .8650 yet again

AUD/JPY has been the main driver overnight and levels above .8800 didn’t last long in AUD/USD. The overnight lows were around .8693 and interbank sources report that solid bids appeared near there.

.8650 is major support on the weekly chart and it has held firm on two separate occasions this time around. One would suspect that the AUD bears will have another crack at this level but much of today’s intraday action will depend on what happens in USD/JPY and the JPY crosses.

Risk-reward would seem to favour the .8650/.8820 range staying intact, so buy any 30/40 dips with stops below .8640 looking for a quick 80/100 pip rally.

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