AUD/USD – Remains very well bid on any form of a dip with the underlying structure still grossly constructive. The market has most recently broken to fresh 2009 highs beyond 0.9330. However, given the overbought weekly studies, we are not entirely convinced of the current recovery rally and would not rule out the possibility for a major double top formation with the market failing to materially extend gains beyond 0.9330 and rolling back over through neckline support at 0.8905. The daily RSI has failed to confirm the latest bout of strength and we look for a break back below the current daily low at 0.9285 to confirm bias. STRATEGY: SELL @0.9280 (Market trading above 0.9280 when issued; we are selling downside break) FOR AN OPEN OBJECTIVE; STOP 0.9410. RECOMMENDATION TO BE REMOVED IF NOT TRIGGERED BY NY CLOSE ON WEDNESDAY. POSITION SIZE WILL BE 3X LEVERAGED.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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