The Sovereign sellers I mentioned yesterday at .9880 did manage to put a temporary top in place but there hasn’t been much of a pullback thus far. EUR/AUD selling will undoubtedly have helped the Aussie’s cause. There are more heavy sell orders between .9925/50 but risk sentiment will need to pick up some steam today in order for these to get challenged.
The biggest downside risk to the AUD/USD today will be posed by the EUR/USD. If it breaks again below 1.2500, and this time stays below, then AUD/USD will also be infected by the bearish momentum and we could see yesterday’s opening gap closed.
Short-term ranges should be contained inside .9750/.9950 with stronger levels just outside of this range at .9650 and 1.0050. Range trading definitely preferred in my opinion.
