Similar to mid-December move, the aussie is most vulnerable to Fed raising rates and higher US2y and US10y yields. In spite of great data from Australia, stabilizing economy in China if the Fed raises rates on 15th of march or keeps a high probability of 3 hikes in 2017, we can see the aussie selling off against the dollar.
Enter short at 0.7610, the 50% Fibonacci retrace of the last downmove. Take first profit 75% at 0.74 and leave the rest for 0.725. We can see the aussie selling off to 0.72 until the next Fed meeting, even sooner if we see as well the copper and iron ore going lower.
Enter short at 0.7610, the 50% Fibonacci retrace of the last downmove. Take first profit 75% at 0.74 and leave the rest for 0.725. We can see the aussie selling off to 0.72 until the next Fed meeting, even sooner if we see as well the copper and iron ore going lower.