And we @megatrade101 is not an exception to this rule. As carry trades used to be a strong favorite of ours, the technical outlook and price levels are more inviting. The recent registered low @0.8540 levels (Yellow circle) was a significant price levels especially when prices recovered on the way higher. Although, some may find this on a lack of market conviction; the desired levels and prices are good enough for some longer term outlook against contrary opinions on the Australian Dollar. However, do not discount the possibility of price pullback since the major trend is still bearish.
The commodity currency alongside with the Kiwi have now more than ever influenced by China risk events and data. This currency pair and its corresponding cross rate of the AUDJPY will still be in focus. Needless to say the attractive strategies that can be played with a controlled risk on position trading. Conservative as it maybe but still delivers the goods. For now the 0.8540 would remain the base price moving forward. Fresh position would be held for over a period of time considering 'Time, Exposure & Tolerance' levels is key to this trade plan & strategy. It is how would be willing to play over a period of time.
Meanwhile, the AUDJPY remains resilient @98.86 to this writing, that reflects it is decided to stay on the higher band of the prices. Since this is supported by the Aussie Dollar's ability to recover from the price decline.
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