Aussie looking quite strong now in the short term and even the medium term. Charts are beginning to change bullish. Now bullish is probably not a word I could use for currencies at the moment, rather we are looking at a correction of the week's declines.
Now we know that 7740 offered good support on the way down, therefore it is going to be quite a hard level to break on the topside. However, if buyers are dedicated enough and follow the charts there is no reason why we cannot make a break above here, which would keep the immediate bias to the topside and we could see 7780. Cover longs will re-instate further longs above 7780, and if broken we can go higher and target 7835.
Now we know this is where we stalled before, so buyers should look to take profits around this area looking for immediate failure. and then only going back into longs above 7865.
As stated 7740 is your key level. If we cannot manage to break this barrier we might come down lower once again to 7625. Cover shorts here and will re-instate longs, keeping stops below 7610.
