Is there still downside for the AUDUSD?
The AUDUSD moved down as we predicted last week. I hope you guys took the trade. The price is now trading in a neutral zone and we've to proceed with caution. If we look at 2013, the last time the fed announced a taper, the price of AUDUSD dumped all the way down to the bottom of the channel and beyond and this time round it could be the same. We've a neutral bias for the AUDUSD this week.
BEAR CASE
Price look due for some upward consolidation before dumping down to the 61.8 or even to the bottom of the channel where it coincides to with the 0.725 level.
BULL CASE
If the fed taper is already priced in and the market is bullish on this risk on currency, 9.757 and 0.768 are in play.
PS: If you control your risk, take both sides of the trade and and time your entry perfectly with a 1:3 risk reward ratio. There is still profit to be made even if you're direction neutral. Making money in the markets has always been mind over matter. Control only what you can.
BEAR CASE
Price look due for some upward consolidation before dumping down to the 61.8 or even to the bottom of the channel where it coincides to with the 0.725 level.
BULL CASE
If the fed taper is already priced in and the market is bullish on this risk on currency, 9.757 and 0.768 are in play.
PS: If you control your risk, take both sides of the trade and and time your entry perfectly with a 1:3 risk reward ratio. There is still profit to be made even if you're direction neutral. Making money in the markets has always been mind over matter. Control only what you can.