A friend of mine who has been trading the AUD/USD since the 1970’s tells me that .7800 is historically always an important level or another way of putting it is that it is an excellent pivot point. The market may trade 20 big figures above or blow but .78 is basically the mid-point. The market has tried on about 4 different occasions this week to break back above .78 and has failed. The IMM data I’ve just read shows the futures market to be very long AUD. Don’t be surprised if we soon see a reaction in the AUD/USD similar to the one seen in cable last night.