As I watch the AUD rally (significantly) against darn near everything but the EUR and GBP I of course take a closer, harder look at the open shorts I have on it.
Yes, the RBA shook the market up by omitting phrasing that sold the AUD off with the July Statement, and this time around, despite the 25 bp cut, the Statement squeezed the near-term bears who got caught in a rally. But what about longer-term shorts? The most precarious position now is the AUD/USD as the 81.50 level in the U.S. Dollar Index has been broken as well as gap support. But does the AUD/USD have a floor to stand on above 0.9100 or will the 20DMA be the ceiling and level that bears have been waiting to sell into. I’d be a seller, if even for a fade, in that I would not expect new lows to be put in.
Along with the AUD/USD, the AUD/CAD is also hitting a daily swing short.
And since we’re going into the weekend shortly here, I have TWO videos for you…
By the way, my outlook on the week has not changed and I view the current correction as an opportunity as long as the trend in intact – meaning the 34EMA Wave can continue to be dynamic resistance.