Aussie looking a little weaker today from the charts, especially after holding 1.0400 which is the 61.8 med term fib level. We are trading on our lows and this morning a break of 1.0345 would see us trade lower with 1.0310 looking to entice us lower.
Here you may well find short covering and fresh buyers, however they will not hold longs if we lose 1.0300. A break below here would see further weakness following with 1.0276/70 the short term objective. Here we cover shorts and go long. We would only stay long however if we held above 1.0270. If we fail to do so reverse longs looking for the market to head lower with 1.0255/45 then the immediate objective.
So we have resistance up at 1.0400. As long as we stay below here ..shorts are fine...however if we break 1.0410 we abandon shorts, go long looking for 1.0445/55.