Forex: AUD/USD Targeting the Yearly Lows – 2ND Skies Forex

FXstreet.com (Barcelona) - The AUD/USD has bounced the lows set earler in the session at 1.0155 and is now trading just a few pips lower at 1.0181. Earlier in the session the China Trade Balance was released which was the initial catalyst for the rebound in the pair.

According to Chris Capre of 2nd Skies Forex, “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.”

He went on to add, “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.”