AUD/USD has eventually broken above some solid selling interest around the .8200/25, although it took a few weeks to do so. It is quite typical for the Aussie to trade like this, grind it’s way higher without ever looking totally convincing. The next big technical target is .8375, the 61.8% retracement of last years collapse from .9850 to .6010. If you believe that the present recovery in market sentiment is likely to continue then you are probably confident that this level will prove no more than a minor hurdle on the return to the .90 handle. If you think that the green shoots are in fact noxious nettles in disguise, then this is a gilt edged opportunity to start setting your short trade. As always, timing is everything.
Good luck today.
