AUD/USD outlook, August 14th
I’m still very firmly in the buy-dip camp and I believe levels near .9035/50 will give existing shorts a good short-covering possibility (see chart). We are currently seeing a short-term USD-bullish phase but I don’t expect this to last very long. USD yields rallied, after decent economic data and Fed comments, whilst Gold fell after India hiked its import tax again.
AUD/JPY made a strong technical break above 89.00 and this should give some added bullish impetus to the Aussie (see chart). Next resistance lies near 89.70 and a clean break above there will add to the bullish case. EUR/AUD has formed a topping formation with resistance now at 1.4750.
I’d suggest a .9050/.9150 intraday range with an overall buy-dip bias whilst prices are above .8950.