AUD,NZD/FXWW News/Trade Ideas

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.

  1. No mate, don’t see it. Action is elsewhere and EUR/USD just incidental. Agree EUR crosses look likely to fall, EUR/GBP and EUR/NZD are standouts, but more value trading them than EUR/USD imho

  2. Same here Sean, still holding 1/2 of my AUD long. Very close to cutting it yesterday after .9150 broke but luckily it held firm after. Then, during the NY session, I managed to close some AUDCAD long for 200-pip profit 🙂 Hoping that we won’t have another Chinese downer today. Are you considering to close your AUD long if .9150 got retested again?

  3. Well done Gus. Yes I will definitely stop out and am leaving my s/l below 9120. My position is smaller and my average has improved so I’m definitely more comfortable. If 9120 breaks then I am 100% wrong so reasonably content if I get stopped (although I will still complain 🙂 )

  4. you certainly know don’t you sean who the fat panda at 0.9150 is who was buying. the way it is rebounding sounds similar to the rebound it gave at 0.9350 just to take it comfortably latter. if consumer confidence and pending home sales are good expect a dollar rally overnight

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