US rolling back some tariffs on China
Some interesting numbers to look at. Will see further development on this data over the next few days.
AUD/USD: Simplicity is Key
Hi All, Yes, simplicity is key. This morning I put together the monthly chart on the AUD/USD, and it seems like we may be in for some long term strength of the USD against the AUD. The following are just views from my technical analysis. Will make this brief with just a 5 x 20 EMA to conduct the following analysis. 
On the Daily chart above, technical resistance at 0.9410 is seen, favors the opinion of holding on to short positions above this level. I would prefer to wait out to the next trading day if the level is breached. However, taking into account that any price above 0.9410, in my opinion, is considered a good 'bargain'. :) If the following scenario comes true, after the 0.8600 is broken, would be setting 0.8350 as my medium term target for this trade. Would be giving up this trade idea if the pair does not fall through by September 2014. I would also note that shorting the AUD/USD can be a little painful, as it derives negative swap.
Samuel Tay
On the monthly chart, we are seeing the 20-month moving average becoming a resistance level for the AUD/USD. From 2011 till now, the AUD/USD has been building a series of lower highs. In my opinion, where we may further see a cyclical reduction in global trade activity (merchant trade) in the third quarter of most years, and China continuing to be more wary of collateralize commodity financing, it could support some weakness for the AUD/USD. When the AUD/USD broke and closed below the monthly technical support at 0.9650, I believe that was the point where we probably saw a possible downside trend to the commodity currency.
On the Daily chart above, technical resistance at 0.9410 is seen, favors the opinion of holding on to short positions above this level. I would prefer to wait out to the next trading day if the level is breached. However, taking into account that any price above 0.9410, in my opinion, is considered a good 'bargain'. :) If the following scenario comes true, after the 0.8600 is broken, would be setting 0.8350 as my medium term target for this trade. Would be giving up this trade idea if the pair does not fall through by September 2014. I would also note that shorting the AUD/USD can be a little painful, as it derives negative swap. Samuel Tay
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