AUDUSD – Testing resistance post RBA bounce
The RBA left the policy rate unchanged at 2.0%, versus market pricing for 30% probability of a 25bp rate cut. However, there was a dovish change to the language around inflation, noting “the inflation outlook may afford scope for further easing of policy”. The combination of unchanged rates but a slightly dovish statement is likely to be a mild positive for the AUD very near term.
Buyers emerged at retest of pivotal .7030/50 next, a close above .7230 eases bearish pressure a refocuses bulls to test offers towards .7350. While .7230 caps the upside expect rotation lower targeting year to date lows next.
- I will be watching AUDUSD today. I am looking to play this pair from the short side for another leg of corrective price action leaning against .7230/50 resistance zone, monitoring intraday reversal patterns to venture short.
- This trade benefits from bearish daily Order Flow and bearish COT positioning, the overnight push higher will have cleared out some late shorts and provides a premium entry opportunity.
- Moving stops to risk free on this position now, short .7211, securing 50pips profits so far
- Trail stops to .7111, securing 100pips profits so far
- Covered my position at .7030, flat +181pips risk at entry 40pips
For updates on this trade set up and the other trades I am currently monitoring be sure to follow me on Twitter @LFXPatrick