Well we certainly had a good clean out to the down side last night. If you bought the pullback and survived the dip under 79c then you have done well. Most overnight longs having taken profit and short sellers towards 8000 this morning have been caught out on the back of the RIO/BHP story.
There are sellers 8050-60 on the day but market still feels a touch short and with underlying commodity support, there is a good chance that the offers on top will be challenged at some stage. Downside, traders will look to buy any pullback towards 7970-80 on the day.
I would be a seller at 8050 today after such a move overnight, but with NFP tonight and the RIO/BHP announcement im not so sure. I will however look to sell any rally back above 82c.
