I remain short the Australian Dollar from two weeks ago, and tomorrows highly-anticipated European Central Bank interest rate decision could ultimately provide further spark for AUDUSD declines.
As I detailed on the Real Time News Feed last week, my initial entry was at the $1.0487 with a stop above $1.0550. We've finally seen the test of $1.0180 I was hoping for, and I will trail my stop lower to Sunday's opening range high at $1.0355 (leaving small cushion for a potential run on stops.)
Yet ultimately I believe that critical upcoming event risk favors Australian Dollar short positions amidst the danger of substantial financial market volatility.
Said event risk starts tomorrow with a highly-anticipated European Central Bank interest rate decision, and any disappointments could cause important market turmoil--sending the highly-correlated AUDUSD lower.
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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
