AUD/USD ‘s topside was contained between 0.77 and 0.78 for entire year during 2016. So far it is very similar story like in the beginning of 2016. AUD/USD has strong start of the year by climbing 1000 pips – from 0.68 to 0.78. Thus it’s natural for current uptrend to pause near the same level. Whether we will see 0.80 in coming sessions will depend upon how 0.76 and 0.75 holds. As we kept on buying AUD/USD and NZD/USD during decent pullback during last year to accumulate more than 1000 + pips, this year also we are going to apply the same playbook, unless something changes drastically.
Today we are looking for a pullback near 0.7600 to buy.
On the other side, our 200 + pip trade in GBP/USD is over now but still looking for buying GBP/USD from decent levels.
US dollar is not going to make up its mind easily during the crossfire between Fed and Trump. Fed’s assumed and somewhat priced in rate hike path is dollar supportive while President Trump’s incessant comments about currency devaluation is bearish. And currently market believes more in Trump’s action than Fed’s ability to hike. It looks like a huge drop in US dollar against other majors is just a tweet away ! 😉
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