The AUD/USD suffered its first significant sell-off in quite a few weeks on the back of short-covering in the EUR/AUD and profit taking ahead of .9400. The fundamental outlook for the AUD remains strong but we are at elevated levels and the constant sighting of real-money funds selling into strength is food for thought.
Both the EUR/USD and the cable broke below their neckline supports, thereby negating pure double-bottom formations. The EUR remains beset by political turmoil but the market is still quite short. Picking a range in EUR/USD and trading the edges makes most sense to me.
Good luck today.
