The US Dollar (ticker: USDOLLAR) trades at potentially pivotal support, and the sudden sell-off has triggered my USD-buy entry against the Australian Dollar.
As noted in my forex strategy outlook report, I think that the US Dollar recovery is at clear risk amidst extremely low FX Market volatility expectations. That said, I likewise highlight the Australian Dollar as a bellwether for this 'risk' move and I think a hold below 1.0480 leaves the downtrend intact.
I'm now short AUDUSD from earlier this morning, as I sold AUD at the 1.04 mark with a stop above 1.0480.
I remain in a small USDJPY position, and I'd like to add on any dips towards resistance-turned-support at ¥80.65.
I'll keep my thoughts posted via the forex real time news feed.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up to David’s e-mail distribution list via this link.
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