Australian Dollar Cross Pick 04.05.2012

As we have the highly anticipated U.S. Non-Farm Payrolls report going into the holiday weekend, I may trade the event risks depending on the outcome, but I am still watching the AUD/NZD as the pair comes off of the fresh yearly low of 1.2575. As the relative strength index bounces back from oversold territory, we are looking for a near-term correction in the pair, and we will use this opportunity to find a good price to sell the aussie-kiwi as the pair continues to mark lower highs paired with lower lows. We will be keeping a close eye on the 10-Day SMA (1.2681) for interim resistance, but would like to see a run at the 20-Day SMA (1.2760) to endorse a short position.