AUD,NZD/Flows and Orders

AUD/USD: Reducing my short position again

I’ve been short for a while now and even though the pair is looking quite heavy, recent experience tells us that range-trading with a modest bullish bias is the way to go. There has been talk of reserve manager bids at 1.0350 and earlier price action would seem to confirm their presence. I’m taking back some more of my medium term short position here at 1.0358 and will sit back and see what happens from here.

  1. Sean: I think I have idea on the level where to rebuild shorts: 1.0360… As far as I recall couple days back you were talking about buying back shorts at that level, now I think resistance should become a support on the way up (if it reaches those ranges)… Cheers.

  2. I hope for sub 1.000, but that could be a wishful thinking. Overall drop of the last couple days was as swift as it should be so I am optimistic about further declines. But on the other hand aussie definitely was rather stubborn in terms of drifting up recently. So will see. I am getting impression that major battle is going in the EUR/AUD and EUR/USD arena. With AUD/USD is just a bystander. If that is the case drop in AUD/USD will be triggered by sellof of EUR/USD and euro could be a better short. I am thinking about throwing EUR/USD short but not sure about timing yet.

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