We’re back above 0.90 once more after the strong retail sales data and today we are looking at 4 straight days of gains. Last week I highlighted the failure up at 0.9085 and this is still the big level that needs to be taken out for a move higher.
AUD/USD daily chart 06 03 2014
Before we hit those highs again 0.9033 offers the first mild daily (D2) resistance point and then 0.9050. We then have new monthly resistance at 0.9089, the 100 dma 0.9093 and 2nd weekly res at 0.9102, so this 0.9085/00 level is fairly strong.
I wanted to play a long from 0.8930 last week and managed a better fill at 0.89 which I’ve offloaded at 0.90. Until we see the topside taken out we’ll remain in range of 0.8900-0.9085/00 intraday and 0.8700-0.91 over a longer period so I’m happy to play that range for now. If we really look like basing at 0.89 then I’ll continue to take longs adding to my core position, while knocking out a bit at 0.90+. If we get a test and fail at 0.9085 again then I’ll still be wary of a larger move down towards 0.87