AUTOREFRESH 
Barrier option at .9200 was tripped in AUD/USD this morning
By Sean Lee || March 15, 2010 at 02:45 GMT
|| 8 comments || Add comment
Typical early Monday morning price action and shenanigans saw a barrier option at .9200 tripped when prices dealt at .9204 on some interbank trading platforms. Most charts are showing .9199 as the high but I’m hearing from one of the Australian banks that the market did in fact trade above the figure.
I don’t particularly like the way AUD/USD is trading at the moment and a clean out does still look possible. Lots of stops building now below .9100 and again below .9060. On the other hand, this is the way the AUD/USD tends to trade. Starts going up, looks terrible for a few days as if it cannot go any higher, and then it suddenly accelerates higher again. Buying big dips still looks like the safest bet here.
9050 range AUD/USD BUY Would be my safe thought. What does your instinct and prodigious training tell you MR Lee?
ummmhhhh, I think leave a flyer at .8960. If 9100 goes and then 9060 goes and we get more press reports of China/US tensions, then the AUD/USD will start to look very weak. I’m unwilling to say exactly where I’d buy until I can gauge market conditions when we get there but from pure technical and risk-reward point of view, buying 8950/60 with 80 pip s/l and 350 pip t/p makes sense
I’m not an economist but I have heard and read that China tightening is a good and welcome thing. Give to get kinda thing.
AUD is in a carry trade like trading style… unwinding AUD could be fast and furious… but trend still remains unchanged.
Depends on time frame. I do agree ultimately it is a long trade. When you get pull backs however it gets really crowded. That can be testy to say the least.
EUR/AUD @v double top right now. Lets see how that breaks. DXY 80.16
Asian Currencies Weaken as Wen Rebuffs Calls for Stronger Yuan … http://www.businessweek.com/news/2010-03-14/asian-currencies-weaken-as-wen-rebuffs-calls-for-stronger-yuan.html
Sean, you clearly have a common case of “RBAitis” [serious symptoms of which include total anguish (or utter euphoria) prior to any Board announcement by the Reserve Bank of Australia]. So, as they say in my American home town of Seattle, “Be Clam”… and, do nothing (well, if you’re still long, then I would suggest bailing out – fast), because that’s what is going to happen “tomorrow” at 11.30 am AEDT, as we all tune into: http://www.rba.gov.au/coming-up/index.html