FxWirePro: AUD/USD set for a slump, shorts hold the advantage - EconoTimes


FxWirePro:  AUD/USD set for a slump, shorts hold the advantage - EconoTimes

* AUD/USD eased on Tuesday as the dollar strengthened on expectations of a smaller U.S. rate cut next month.

* The dollar has been buoyed by conviction the Federal Reserve will choose a smaller 25 basis point rate cut next month, rather than a 50 bp move.

* Traders are looking ahead to Australian jobs data on Thursday, where economists are expecting a rise of 25,000 for September and no change in the jobless rate at 4.2%.

* Technical signals show the pair could lose more ground as RSI is up at 45, and 9, 11,21 DMA's are trending south.

* Immediate resistance is located at 0.6770 (38.2%fib), any close above will push the pair towards 0.6816(Oct 7th high).

* Support is seen at 0.6718(23.6%fib) and break below could take the pair towards 0.6691 (lower BB).

Recommendation: Good to sell around 0.6720, with stop loss of 0.6770 and target price of 0.6650

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