AUDUSD: Upside risk of intermediate-term shift to neutral

Hi there traders this is Steve Miley for forextraders.com and here we’re looking at the Australian versus US dollar, the spot FX rate and we’re looking at the very short term day trade potential for the market going into today.

Well at the moment we’re in this recovery phase for early October. We pushed above the down trend-line that comes from the middle of September. That’s easing negative pressures from this whole September sell off. So it took us down here to 0.6668: a new multi-month, multi-year cycle low.

But the recovery has eased back bearish risks and although we have had a small set back in here from the end of last week, we’ve already rebounded in here going into the beginning of this week. From 0.6725 above 0.6720 support.

And that leaves up-side risks now going back into today, into the middle of this week –  in to Tuesday/Wednesday for a push back higher towards 0.6774 / 0.6776 and 0.6781 resistance peaks up here. Potentially even going into this week, through midweek, up to 0.6809, above which would then shift the intermediate term outlook from bearish to more neutral.

So, both an up-time, short-term bias in here going into the middle of the week, and threat to shift the intermediate term bias from bearish to neutral.

This has been Steve Miley for forextraders.com.

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