We managed to break through the 0.9220/30 and made it all the way up to the strong tech resistance at 0.9287. By the sound of things the real sticky stuff was at 0.9240 and this has now become support, as we have seen since it fell from the high. I mentioned yesterday that I favoured trading a break of this level rather than taking a short and so far that strategy is playing out.
AUD/USD daily chart 10 09 2013
I went long at 0.9239 and will be watching the price action very carefully if we get another attempt towards 0.9300. My play is to T/P at around 0.9300/30 but if it looks strong I might hold and add on a break of 0.9330.
It’s still very much in the balance whether the pair can really put in a decent rally from here. As we all know from history, it’s a stubborn bugger at times and it can make you work hard for your money. At least this time the carry is in my favour so I’m not bleeding money while waiting for the position to profit. Small mercies eh?
In the other aussie crosses, EUR/AUD is looking weaker today after following the euro up yesterday. After 5 days of declines the falls levelled off but the fact that yesterday’s 100 pip run off the low has been snuffed out suggests that there is more risk of the cross dropping further. As of writing we’re breaking back below 1.4300 and heading for my first buy zone.
EUR/AUD daily chart 10 09 2013
AUD/JPY is lending support to the aussie as USD/JPY continues to move up. We’ve retaken a broken support line from Jun 2012 and are challenging the July 24 highs at 92.70. A break above will bring the July 9 highs into play at 93.05. Just above those we have the 100 dma at 93.20. A clean smash through those opens up the door for a sustained move higher.
AUD/JPY daily chart 10 09 2013
