Is the Aussie Going to Take out 75 Cents?
Rowan Crosby • 1 min read
Last week was moving week for the majors and one of the big ones was certainly the AUD. Its decline has come fast and hard and as a rule, I have been looking to simply sell pullbacks. The trend has been good to us and for the most part, our followers have been able to jump on quite a few short signals.
From a more fundamental perspective, the AUD/USD should never really have been trading as high as it was. Certainly, that’s what the RBA believed anyway. They didn’t like 80 cents and they wanted something in the low to mid 70’s.
That’s why I think 75 cents is an important psychological level for the AUD to take out. I think we will see price being sucked towards that level.
As such I wouldn’t mind a sell around the 0.7580 region, with a view to us taking out the 0.7500 level this week. That said there are some conditions.
We have the RBA minutes out this week. I don’t see much new info coming out, but it has the potential to bring on the volatility. We also had quite an extended move last week and sometimes that balances out with a period of consolidation.
Given the fact that it’s Thanksgiving in the States this week and we have a shortened week, that will no doubt impact trading volumes.