The most interesting aspect of the AUD/USD price-action at the moment in my view is what happened after the market traded at parity; it fell 1.4% in the next 5 hours. This tells me that the uptrend is exhausted for the moment and that after reaching a major target it now needs to take a rest or consolidate. As in any strong uptrend, most technical indicators are significantly overbought. This is of course no guarantee that the bull trend is about to turn but it does argue for some “letting off of steam”.
Playing a trading range between parity on the topside and the 20-day MA at .9735 on the downside looks like a sensible strategy.
