AUD,NZD/Technical Analysis

AUD/USD session outlook

     As you know I am short and bearish but there is no compelling reason to suspect that the recent consolidation around the 100-day MA is suddenly about to end. True we are entering thin end-of-year markets so expecting the unexpected is a wise thing to do. On the day, more reserve manager bids are reported at 1.0300 but we haven’t heard much regarding the size of these bids. Resistance should be firm near yesterday’s highs at 1.0380. Playing this range makes sense and I’m sticking with my overall bearish bias.

  1. Morning Sean, what miserable weather today! I went long again at 1.033 last night. The 1.03 level looks firm for now but don’t think this will last long as there is a large SL just below it. My plan for today is to close the long around 1.036 and then short again between 1.039 and 1.037.

  2. Sean, I truly hope that it will get to 1.038 region. I would be happy to rebuild shorts in that region. I agree that 1.030 seems to form nice interim bottom. My thinking that selling in JPY/AUD cross (if any) should give some minor support for AUD/USD. I am thinking about position sizing that would allow me to add even more in case of some stupid spike in AUD/USD to 1.045 (though such eventuality would make me reconsider my sanity).

  3. Sean, You know what… I am happy with a quiet one, if I am on the right side. I am playing with leverage, and not sure I want excitement of JPY cowboys… 28-38 would be quite a nice gift for me before weekend, but usually it never goes according to plan, so let’s see what kind of fireworks we might get out of the blue….

Leave a Reply

Your email address will not be published. Required fields are marked *