AUD,NZD/FXWW News/Technical Analysis/Trade Ideas

AUD/USD: Potential base at .9035/40 but bears still hold strong cards

You know my views here, the market got overly bullish at 1.05 and is now getting overly bearish at .9000, when in fact we should be in range trading mode. Nevertheless, the recent bear trend has been impressive in its ability to defend resistance levels and until this changes, bottom-pickers will need to be careful with position sizes and keep stop-loss orders fairly tight.

The 4-hour chart is showing some very clear support levels at .9035/40 and resistance levels at .9180 and .9250, and these are the main levels to watch today (see chart).

Chinese CPI is the main risk event on the economic calendar.

  1. morning Sean.
    Risk today to AUD would be the Chinese CPI. AUD has been caught short by many lately and it rallied mildly yesterday, sort of gravity defying. If the numbers from the Chinese today is not good and we still see a AUD going up, high chances we are seeing a change in trend. Will be watching EURAUD closely.

  2. Yes Wassim, if CPI comes in much above forecast then mkt will worry that Chinese central bank will keep credit situation very tight and this is seen as AUD bearish

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