Hourly support at 1.0920 has now been broken and the next level of support is Friday’s low at 1.0880. It will be interesting to see whether we see a big purge of AUD longs pre-RBA.
An FX options expert has contacted me to say that it’s highly unlikely that options traders are caught holding large short spot positions as they wouldn’t have the trading limits to do so, so that particular rumour may be ill-founded.
