With the Shanghai market showing strong gains today, the AUDUSD has mangaed to pop back above 83c. The dip back to the 8270 area has held well, and should be support for the rest of the day. Still, 8320 is the level to break on top, above that could see a renewed attack at the highs, with stops reported above 8330. Talking to a few traders, i get the impression that the market is still short, but i prefer selling into the rally.
Technically yesterday’s chart formation on AUDUSD, of an outside candle is quiet bullish. However there is conflict with AUDUJPYwhich put in a bearish outside formation yesterday(Citi Bank’s sell recommendation).