AUDUSD - Signals weakening, temporarily
Against a background of AUDUSD prices trading above their 50,100 and 200 day moving average rates, but with just a cautiously bullish outlook on the week, yesterday’s signals were mixed and neutral. A little changed close confirmed these, the market trading sideways inside Friday’s range for a second day in a row. However, signals have weakened in Asia this morning and Friday’s low has been broken. While it leaves a negative bias, signals are not strong and the outlook for Wednesday is just cautiously and temporarily bearish, allowing room to sell a rally at 1.0534, with a stop loss at 1.0562. The immediate profit objective is 1.0504, today’s Asian low, with a move through this point targeting 1.0485 and then towards 1.0461, last week’s base.
The risk to this call however would be with buying through a stop at 1.0562, yesterday’s high, a cautiously positive signal improving sentiment to 1.0587, December’s top.
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