AUD/USD — Buy on Weakness With Short-Term Target of 0.7170

It hasn’t really mattered whether or not the ratio of the S&P 500 / Gold kept falling, the Aussie has shown extreme resilience to reject lower levels. The trap of volume circa 7050 with the 5-day MA now turning bullish, which is a sign of short-term positive momentum, does suggest that we are in the midst of a buy-side campaign until the short-term target of 7170 is achieved and buyers can start finding sufficient pockets of liquidity to close their short-term long exposure as macro accounts are likely to step back into sell-side interest. For now, I am a buyer on weakness, with my order waiting to be filled on a retracement back towards 7060.