The Australian Dollar looks set to continue its slump
The last trading day of the week might provide us with some opportunities to buy puts on the AUD/USD binary options forex pair. We see no big data to move the Australian currency higher at this stage and we still think it can go lower in the coming days and weeks.
The pair slumped big time yesterday and today it saw no decent buying which warrants a bearish sentiment towards it for now. Buy puts on a daily basis at levels around 0.8960
Another opportunity could be to buy puts on a daily basis at current levels for more aggressive players or on a break below 0.8910 which is the base set this European morning. the price is pressure by deteriorating domestic outlook, and higher unemployment levels in the country.
After a spike higher on good job creation numbers yesterday the pair has slumped from highs around 0.9080 to 0.9010. Following that it staged a rebound to about 0.9070.
During the start of the US session an interview with Royal Bank Of Australia governor Glenn Stevens was published where he stated that a more desired level for the central bank would be around 0.85.
If you look at the charts the pair has slumped quickly after the release below the 0.90 handle and it hasn't looked back since. The Asian session tried to push above 0.8960 which has become as a sort of an important level.
Those of you who a re looking for hourly opitons plays could try to buy puts if the pair rises to 0.8970, however if the pair breaks back above 0.9000 again it would be difficult for it to remain bearish - look for buying calls in that case.