Hope all had a great run in the E$'s rally yesterday. I was expecting the next target around 1.26ish to be achieved today but everything was accelerated in yesterday's move which leaves us with limited headroom for today.
Despite the downgrade of Spain, E$ held its ground. A rebound in EURAUD above 1.2600 indicates near term risk aversion as AUD$ dwindled. I see higher probability of currencies retracing overnight gain as market is turning its focus to the Greece election over the weekend.
I have instead chosen to sell AUD$ on rally as it looks more vulnerable on the chart. It seems like market has been rejecting price above 0.9955/65 region for the past couple of days and pressure is on for AUD$ to consolidate towards 0.9860/70 before it finds a stronger support to propel it higher again for 1.0120 in the weeks ahead.
For today, 0.9955/65 to cap (1.0000/20 news induced) and 0.9860/70 to hold (0.9815/30 news induced).
No comments:
Post a Comment