Negative sentiment to continue for AUDUSD
Against a background of bearish daily and weekly signals for sentiment, Tuesday’s profit taking rally was overturned on Wednesday. A renewal of selling pressure, and a seventh down day from the last eight, took AUDUSD to a test of this year’s lows. They were not breached as the market stalled at the 50-day moving average. But although that point may encourage a positive recoil, immediate technical studies are clearly negative with potential through the 100/200-day averages.
Management and risk description
A move through 0.7803 means the stop can be lowered to break even.
Entry: sell in 0.7835/40 area and at 0.7864.
Stop: 0.7907 bid.
Target: 0.7803, 0.7772 and 0.7753.
Time horizon: intraday, closing 1600 GMT.
Selling to averages