Originally updated: 06:25am
Currency Pair: AUD/USD
In today’s trade set up we will be focussing on short term selling opportunities on the AUD/USD.
The AUD continued its plunge against the dollar after voters in Switzerland rejected a referendum to force the SNB to hold at least 20% of its balance sheet in gold – Australia is the world’s second largest producer of gold. This coupled with good strength seen across the board in the dollar due to falling oil prices and the Fed moving closer to raising rates next year, we favour selling the AUD/USD.
I expect this pair to continue its down move during the session and eventually hit new lows.
If it does retrace back up first then there is a nice confluence zone of resistance that traders could use as a reference to sell from again.
The confluence zone is at 0.8490-0.8500
Stop loss could be placed at 0.8540
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Source:: Trading Outlook – AUD/USD