FX Market Commentary: AUDUSD Breakout Pullback Setup | May 7th

AUDUSD – Targeting the Yearly Lows
Rumor-ville has it Soros was selling about a yard against the Aussie in anticipation of a rate cut. Funny how things change as a yard doesn’t move pairs like it used to. The RBA did an unexpected cut after all (except to the prescient Soros), and the pair has lost just shy of 200 pips in the last two days. This has taken out the key level at 1.0221 which held the pair up for two weeks.

This should offer traders a breakout pullback setup as I’m guessing Soros is either a) not going to let his foot off the gas, or b) will not just yank his positions all at once (virtually impossible for him). I’m also guessing other traders are not thinking to buy the pair after the rate cut, so am expecting lower prices.

So watch for pullbacks into this level, targeting the yearly low at 1.0115.

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