The AUD market has been very long across the board for the last few months but we’ve seen some more unwinding of these positions over the last week or so. The AUD/USD has fallen 400 pips this week but most dealers I speak with do not expect another freefall next week. The general consensus seems to be that we will find a new 400 pip trading range which we will slip into for an extended period, similar to the .9800/1.0200 previous range for Jan/Mar.
I’d expect the AUD/USD to find support around .9550 and resistance to be strong now around .9950.
