A bearish AUDUSD reversal from below the 50 & 100 day average rates left Wednesday’s outlook as bearish and to sell the rally. Although this was the correct strategy for the European time zone, a sharp sell-off in the US$ in the New York time zone saw sentiment in the Ozzie rally by almost ¾ Big Fig on the day.
Tuesday’s bearish signal and yesterday’s bullish one have been followed by a sharp sell-off in Asia this morning. Although this has confirmed the weekly view, the volatility and indecision leave signals cautious, but they also remain bearish, though oversold on an intraday basis.
With this in mind the outlook for Thursday is to sell on the open and at .9290, with a stop loss at .9320. Targets are to .9255, .9230, June’s low and .9202/05, May & April’s low trades.
