Easing off long AUD play
I’ve been playing the AUD from the long side for the last 5-6 weeks but the little Aussie battler is starting to feel quite overbought especially on the crosses. I have exited my AUD/USD longs and am dipping my toes into some short AUD plays, albeit with very tight stops.
AUD/JPY is my preferred play and the ‘gap-closers’ amongst you will no doubt have recognised the fact that the move back to .6995 has closed a gap from 4 weeks ago. I’m edging into shorts ahead of .7000 with stops above .7050 for now.
EUR/AUD also feels seriously oversold as indeed do most of the EUR pairs. There have been plenty jumping on the ‘end-of-EUR-as-we-know-it’ bandwagon yet again but this trade is heavily overdone in my view. Not so sure on the levels in EUR/AUD but I’m looking for some basing formations on the short-term charts.