Normally one would expect some sizeable optionality at a big psychological level like 1.0000 but I don’t think that’s the case this time. Certainly there is some corporate demand at that level as well as a few small barriers, but nothing huge. There will undoubtedly be stop-losses just below so, in tried and trusted Asian market fashion, look for the stops to get triggered and then the usual spike back higher. Australian jobs data and Chinese trade figures will ensure that many players pull their bids/offers out of the market and that will increase volatility.
I’d stick with the sell-rally strategy but we may see some choppy conditions around Parity for next few sessions; Range favoured .9940/1.0075
