AUDUSD has gained 150 pips during a couple of days. But what war the trigger, and is it really the start of a new rally?
It’s always worth watching the market sentiment, and its reaction to economic events. If an indicator came out above expectations, and the currency was not able to show a strong appreciation, it’s the sign of a looming retreat. Today we saw better than forecasted labor data out of Australia, and AUDUSD is not able to hold its initial gains.
If there is a single trigger driving the currency up, wait for correction. Yesterday, the only driver of AUDUSD jump was large option expiry. That’sit.
If an asset having strong correlation with a currency is going up, and the currency lags behind, it’s time for retracement. Today Gold, playing a big role in lives of both Australian economy and Australian currency, added 0.22% during the day. And AUD is tittering around 0%.
I think it’s time to sell AUDUSD with initial target at 0.7880, followed by 0.7840 if broken.
It’s always worth watching the market sentiment, and its reaction to economic events. If an indicator came out above expectations, and the currency was not able to show a strong appreciation, it’s the sign of a looming retreat. Today we saw better than forecasted labor data out of Australia, and AUDUSD is not able to hold its initial gains.
If there is a single trigger driving the currency up, wait for correction. Yesterday, the only driver of AUDUSD jump was large option expiry. That’sit.
If an asset having strong correlation with a currency is going up, and the currency lags behind, it’s time for retracement. Today Gold, playing a big role in lives of both Australian economy and Australian currency, added 0.22% during the day. And AUD is tittering around 0%.
I think it’s time to sell AUDUSD with initial target at 0.7880, followed by 0.7840 if broken.