Looking to Sell Aussie
The market is in the process of retracing the major drop off from the post-float record highs at 1.1080, with the price pushing back to the 50% fib retrace off of the 1.1080-0.9925 move by 1.0500 thus far. While there is certainly the possibility that gains will stall out somewhere in the 1.0500’s around the 50% fib, we suspect that the greater probability is for continued gains back towards a major confluence of resistance in the mid-1.0600’s, which comes in the form of the 20/50/100-Day SMAs and the 61.8% fib retrace off of the 1.1080-0.9925 move. Overall however we contend that any gains are corrective and would be looking for opportunities to sell. Our strategy would be to look to sell on a break back below 1.0350 or on a rally up towards 1.0650.
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