Strategy 18 December 2013

AUD/USD – recent low not confirmed, tighten up stops on shorts


AUD/USD is under pressure and the focus is on the .8848 August low. Our short term target remains the base of the base of a 2 year down channel at .8745 – this is expected to hold the initial test. We note that the daily RSI has yet to confirm the new low of .8883 and we would tighten up stops on shorts accordingly.

However longer term we are bearish and longer term targets are found at .8550 en route to .8068.

Intraday rallies should now struggle on rallies to .8975/.9000 and provided that the topside is capped by the .9140 resistance line, we will maintain an immediate negative bias.

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