I’ve gone short AUD/USD at 1.0720 and will look to build a short position between 1.0650/1.0775 in the expectation that a top will form below 1.0800. I will review the strategy if the market breaks cleanly above 1.0800. If a top forms, I see scope for an easy retracement towards 1.0200 and potentially back to 98 cents.
It’s not that I’m particularly bearish AUD, or bullish USD, simply that I think the AUD/USD is in a long-term consolidation phase below the 1.1080 highs and this range-trading phase has a ways to go before its done.
