The Aussie is under performing the broad market rally to the USD
In one of our last currency forecasts for the year we will take a look at the Australian dollar and its recent dead zone - cruising around 0.89. The AUD/USD binary options forex pair is dormant around the figure providing some good opportunities.
We believe it is a good day to buy daily calls and some options for next week too. All you have to do is wait for the pair to drop to its daily lows that are cursing around 0.8880.
As you can tell markets are not very liquid these days and small volumes cause big volatility but lovers of risk taking can try and purchase some call options for the end of the day today or Monday, or why not purchase a weekly option.
The Australian dollar has been under pressure recently because of Chinese inter-bank lending rates spiking very high, so it does not have the same volatility that is making the EUR and the GBP go crazy today.
We see support levels around 0.8880 and this is where we will be purchasing daily call options. Current levels around 0.89 might as well prove attractive, but since we are all in a holiday trading mood extra caution is advised.
On the other hand our scenario will completely fall apart if we see rates dropping below 0.8870. That will invalidate our thesis and will put us on the sidelines to wait for better trading days. Expect this low liquidity trading to continue next week.