The Aussie is correcting heavily to the downside today, dropping a quick 100 pips recently as it reaches towards 1.0625 in the initial hour of trading over Europe. The pair had been supported in days prior by record gold prices as well as hints of further Fed stimulus measure, hitting a fresh 1-month high in 1.0800 in overnight trade yesterday, however has since reversed course as Bernanke yesterday closed the door on speculation of QE3.
Mustapha Azeez of FX Instructor writes: “The strong resistance at 1.0800 easily rejected the advance of the bulls. Since then the price has zigzagged down. It’s obvious that the Aussie is running out of stamina. The trend may turn bearish at last, and therefore I’ll go short anytime from now.”
No comments:
Post a Comment