AUD/USD had a very back and forth session in order to essentially finish unchanged. We are trading at the bottom of the recent consolidation area, and as such the market does look like it’s trying to set up for a selloff. However, the buyers have stepped in and supportive the market over the last couple of sessions.
If we managed to break down below the lows from both Monday and Friday, we are more than willing to start selling aggressively. We think this market would run down to the parity level at the very least, and possibly down to 0.98 or so. As for buying, if we get above the 1.0250 level, we think we go back up to 1.06 before it’s all said and done. Because of this we have a bit of a binary type of trade set up now, which of course are the favorite kinds for us to trade. We have our levels, and now we simply need the market to do its bidding.
Written by FX Empire