AUD/USD: 0.7890EUR/USD: 1.1360It has been another generally choppy session with Greek headlines again being the main focus, especially after Germany rejected the Greek proposal to extend the current loan conditions.. This looks set to be the case heading into the weekend, although the EU and US manufacturing PMI’s have the potential to create some waves. Otherwise there will be little to go on so it could be a rangebound session, dominated by political sound-bites from the EU..
The Aud has continued its choppy price action, gyrating either side of 0.7800 and currently sitting at 0.7890, after some spike moves in either direction that has culminated in a 0.7757/0.7842 day.
While I retain and overall bearish stance on the Aud, the daily indicators still have a positive bias, and that being the case, the downtrend is unlikely to resume in earnest for the time being and I suspect we are in for some more of the same choppy trade heading into next week.
Back above 0.7800, 0.7840 seems to have the topside capped for now, but a break of which would hint at a run back towards the 6 Feb top at 0.7876, which should be strong resistance. Above here, we could be in for a run towards 0.7895 (23.6% of 0.8794/0.7625) and then to the 50% pivot of 0.8230/0.7625 at 0.7925, above which could then see a run back towards the Fibo resistance at 0.7995 (61.8% of 0.8230/0.7625).
Back below minor support at 0.7773 (200 HMA) would revisit the day’s low at 0.7756 and then possibly could head back to Tuesday’s brief low, seen immediately after the release of the RBA Minutes, at 0.7740. Below there, 0.7720/25 will be the next support ahead of 0.7700, a break of which would then head to minor support at 0.7665/70 and possibly on to last Thursday’s session low of 0.7643.
Look for another choppy session, but with a mild downside bias, using 0.7740/0.7830 as a guide.
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Jim LanglandsFX Charts www.fxchartsdaily.com
