AUD/USD outlook week October 22nd: Traders eyeing 1.0310/20 very closely
I have no need to tell regular AUD/USD traders of the importance of the 1.0320 level, as it’s proved to be an important pivot in recent times. It proved to be a strong support level on 3 occasions before breaking after the RBA rate cut and then holding resistance. Subsequently most trailing stop-loss orders were placed above there. Now we will start the new week sitting right on this support and if it holds, then I think the bulls will buy hard. The drags on the AUD remain falling interest rates and a stuttering Chinese economy but the pluses are that, relative to everyone else, the AUD still looks attractive. CPI on Tuesday is the first main event risk.
AUDUSD has a silly doji on a daily chart, pointing to a likely reversal in trend.
Looks like some stop loss hunting is in the process.
I think GBP/JPY might be a good pair to watch today, seems to be a lot of trading interest in sterling at moment
Hi Sean, what’s your feeling on GBP/JPY today? I think a buy around 126.15. As for a short, I’d say when 126.72 breaks hard and the price comes back to this point, it would be a good sell opportunity.
Agree Jones on latter strategy; if bearish break wait for pullback and then sell. Lot depends on level of momentum of course
Fingers crossed something will happen today. Or else I will have to trade CAD/JPY again 🙂