Looks like the level is now starting to be the key to any major bounce in this cross with a second failure within a week.
AUD/USD’s missed the boat this morning as the EUR/AUD cross leapt up to 1.2454 from lows in Asia of 1.2358, but there are apparently some pretty solid bids down around 1.0450/60 in AUD/USD which is giving good support.
There was also talk from CitiFX wire earlier that traders were looking to reload longs in the 1.0450/80 area as well as 1.0420, with a view to run up through yesterday ‘s 1.0574 high to challenge trend channel resistance around 1.0650.
Must admit with all the Greek indecsion going on I still fancy this cross lower, but a clear break of the 1.2450/00 would suggest a possible move back up towards 1.2900.
Time will tell… we’ve got Aussie CPI tomorrow and the futures markets are implying about an 84/85% chance of a 25bp cut next month
AUD’s at 1.0460, with the EUR/AUD back around 1.2420
