I was all set to crow about my brilliant long GBP/AUD call yesterday until Oz began to motor and ended up rebounding better than a cent from session lows. Prices reached 0.7275 with intraday shorts scrambling for cover on the move back trough the 0.7250 area.
0.7220 is providing support on pullbacks near-term while 0.7140/60 is solid support in the more medium-term. The 200 day moving average remains a hurdle above the market, today at 0.7336.
Heavy buying by a US investment bank (who some believe are acting in concert with an Asian central bank) turned the market completely around this morning after a sharp bout of profi-taking knocked AUD lower late Asian and again during the New York morning.
