Levels to watch- Friday October 21st

I’m still long AUD/USD after buying the ‘dip’ at .7670 yesterday. I’m still comfortable with the position but will try and improve my average by hopefully picking the intraday ranges correctly. Interestingly Morgan Stanley have put out a very bearish strategy on the AUD/USD (“MS looking at short AUD/USD at .7670 on PULSE, sl .7750…target .6500” …from the FXWW chatroom).

  • AUD/USD: Any initial rallies to .7650 are likely to attract selling interest, first up, so I will lighten my position near there. I expect technical and market support to be extremely solid near .7570/90 so I will add or re-buy there, market conditions allowing of course.
  • USD/JPY: 104.20/25 is expected to attract decent supply from Japanese corporates and that should prove toppy in early trade. Stale shorts will undoubtedly welcome any dips towards 103.60 and I expect this level to provide strong support during the Asian session.

Sorry no strong views or information on other majors.