AUD,NZD/FXWW News/Trade Ideas

AUD/USD: Nearing buy-zone

I’ve bought small AUD/USD at .9290 as I feel we are nearing the buy-zone. The market remains overall very short of AUD/USD and even though the bears have gained some serious short-term momentum immediately post-Bernanke, I think they will struggle to maintain it over coming sessions. I’m keeping it small for now but I expect .9230/50 to be the base for this spike.

  1. Hi Sean (a bit early Sydney time),

    If 9250 holds this fall and the Aussie starts to bounce, what should be your target for the bounce? AUD looks very ugly now.

  2. Always looks it’s worst at the bottom!. Firstly the AUD is heavily oversold oin the crosses like AUD/NZD and EUR/AUD and secondly I don’t think the bullish USD sentiment will last very long. I think we will bounce hard to 98 IF 9200/50 support holds.

  3. Hi Sean,

    Any thoughts on the EURAUD, i’m kinda with you on the AUD counter trend but i do feel that this pair may have a lot more downside potential with rumblings coming from europe again and with FOMC done, the focus could shift back to eurozone problems really quickly and technically the inverse head and shoulders seems to have run it’s course.

  4. Hi Sean,

    In my opinion that AUD/USD global macro trend is down trending as I quoted before driven by the declining economic performance of the Asian economic block and the strengthening of the American economic block. Therefore, to my opinion the position for AUD/USD shall always be “short/sell”. Although carry trading practitioners may look for both interest rate differential plus appreciation of the AUD (short-term profit making) but it is at risk to follow to long. AUD/USD. Therefore, always “short/sell” carry the lesser risk rather than always “long/buy”. Just an idea.

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