16 Dec 2013
AUD/USD, possible exhaustion selling - 2ndSkies
FXstreet.com (Bali) - AUD/USD is getting into close contact with 0.8950/0.90 - important level that held in the past - , with the last down-leg possibly communicating exhaustion selling, notes Chris Capre, Founder at 2ndSkies Forex.
As Chris notes: "I suspect sellers will be covering heading into the major support zone and yearly lows between 8897 and 8842. I am open to taking a small long half the normal position size with stops just below the bottom of the zone. Bulls can look to target 8990, 9150 and 9275. Bears can meanwhile look for pullbacks towards 9100 or 9200 to trade with the trend and re-attack the yearly lows."
As Chris notes: "I suspect sellers will be covering heading into the major support zone and yearly lows between 8897 and 8842. I am open to taking a small long half the normal position size with stops just below the bottom of the zone. Bulls can look to target 8990, 9150 and 9275. Bears can meanwhile look for pullbacks towards 9100 or 9200 to trade with the trend and re-attack the yearly lows."