AUD/USD: Tending toward a bullish bias intraday
- Prime brokers reports suggest to me that the speculative market is largely short as they wait in anticipation of further selling of the AUD from the big real-money funds;
- Technical support/resistance levels are very clear at .9050/.9250;
- Plenty of risk events looming with the HSBC China manufacturing PMI today, the RBA tomorrow and the the NFP on Friday;
- AUD/NZD and AUD/JPY are showing signs of reduced weakness.
Faced with a strong downtrend, care is definitely needed when picking entry levels and I certainly would not buy breaks. I’d prefer to wait for intraday dips and buy in expectation of a move towards .9230/50 over the next few sessions, keeping stops below .9040.