AUD/USD: Pick a 200 pip range for this week

The downtrend in AUD/USD is quite strong but it’s already come a long way and the AUD looks reasonably strong on the crosses especially against the European currencies. That sounds like a recipe for range trading and I’d use this mornings opening levels at .8200 as a mid-point for the week.

There is short-term resistance at .8225 which might cap prices initially and any dips towards .8150 on the day will meet with grateful buyers. Outside of that I’d look to play .81/.83 and if I were forced to choose, I’d go with a cautious bullish bias.

  1. I am still looking for a significant low to be made in the AUD/USD in the USD$0.8000 area which it may well have done now.

    On that basis I agree a bullish bias may be the correct one to make profits. However, it is unlikely we will simply turn on a dime and rush to new highs any time soon. I will be buying dips having just squared up a small long from 81 cents.

    So my range for the week is 0.8150 to 0.8350

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