AUD/USD: Position lightened a bit but I’m still bullish
It was a bit of a sleep interrupted night and we all know what’s it like to be nursing a position back to health 🙂 I took a bit more risk on by adding at .9160 but thankfully the bids were strong enough to hold and we saw a nice relieving bounce. I’m still strongly of the view that the AUD sell-off is 50% driven by speculators (certainly there are international asset managers bailing out of Australian markets, no doubt) and I think too many of these speccies are entering the market at the wrong levels. I’m expecting a minimum bounce to .9800.
Nevertheless momentum is bearish and there will be further pushes lower so it makes good sense to lighten on rallies, and get some better sleep as well. I’d expect support now around .9220/30 and upside resistance at prior lows near .9325/30.
Good luck today.