Whilst EUR/USD and cable perhaps might now try to find consolidation ranges, the AUD/USD remains vulnerable to further losses. We don’t need to search around for logic here, simply that the market is overly long. The obvious resistance level is .8580 which was the previous major support which acted well as intraday resistance yesterday. We can also expect to see lots of trailing stops above .8600. I still like the sell-rally strategy although I’d prefer to be selling on an .87 handle rather than an .85 handle. If the EUR/USD continues to move aggressively higher then we may in fact see those levels.