The Facts Change on Aussie Dollar - We’ve Got to Change
Trade Implications – AUDUSD: Last week we highlighted the fact that our SSI-based Momentum2 trading system went long AUDUSD as a key reason to be bullish. Past performance is notindicative of future results, but the system has done well catching key turning points in the AUDUSD.
Yet that same strategy has flipped direction and has now sold AUDUSD from $1.0405, which lines up with our Senior Technical Strategist’s calls for an AUD short below $1.05. We really don’t like switching direction on a week-to-week basis, but if the facts change, we’ve got to change. There’s obviously risk that we might get chopped out yet again, but there’s too much evidence for AUDUSD for us to ignore—especially if we clear key support at $1.04.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.
New to FX markets? Learn more in our video trading guide.
Contact David via
Twitter at http://www.twitter.com/DRodriguezFX
Facebook at http://www.Facebook.com/DRodriguezFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.