AUD/USD: 0.7255EUR/USD: 1.1275Equities moved higher Thursday, after the FOMC minutes were released, which had a slightly dovish tilt, while the US$ remained under some pressure. The commodity bloc, Aud and Kiwi, have been the main beneficiaries although elsewhere the dollar, while soft, remains largely within its recent range. It may be a similar session ahead, with little major data to provide direction, although the 2 day IMF meeting may produce some market moving headlines which could cause some gaps at Monday's open.
AUDUS traded under some pressure through Asia/Europe, and tested the Fibo support by trading down to 0.7164 before a reversal higher, accelerating higher since the release of the FOMC Minutes, which has allowed the Aud to reach new trend highs at 0.7271, so far falling just short of the post-FOMC Meeting high of 0.7277 (18 Sept).
While the dailies point higher, suggesting further gains ahead, buying dips remains the favoured strategy. These will find support levels at 0.7235 (minor) and then at 0.7200, ahead of the rising Fibo support, now at 0.7191 (23.6% of 0.6936/0.7271). Below this would open the way for a return to the session low, 0.7164 and then to 0.7142 (38.2%/200 HMA) and 0.7105 (50% pivot).
On the topside, a break to new highs would take the Aud above 0.7280, and which would then allow a run towards 0.7300 and on to the 21 Aug high at 0.7359, and eventually to 0.7380 (100 DMA/23.6% of 0.8162/0.6900) which will be a high hurdle to overcome at the first attempt.
It may be a steady session in the absence of any major data, but the idea of buying dips remains intact for an eventual look at 0.7300, and possibly higher.
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