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Lucas: Continued weakening for AUDUSD

The Australian Dollar has gained momentum from the US dollar’s weakening this week. Investors are expecting the AUD’s strength to be short-lived. Steve Lucas from 3c Analysis is looking to sell the AUDUSD pair as sellers have begun to enter the market in early trading.

This current rally for AUD is not expected to last, which is evident by major institutional investors losing confidence in the currency recently. Morgan Stanley revised down its outlook on the AUD. The investment bank expects prices to hit AUD 0.84 by the end of the year and AUD 0.76 by 2015 year end, from earlier estimates of AUD 0.95 and AUD 0.88. HSBC also lowered its forecast for AUD prices from AUD 0.86 to AUD 0.82 for the end of next year. Both bank’s revised forecasts correspond with the Australian government’s push for a weaker Australian Dollar.

This morning Steve is expecting to sell the recent rallies in AUDUSD. He is looking to enter the trade at the market open and again on a rally to AUD 0.8785. His two targets for the trade are AUD 0.8727 yesterday’s low and AUD 0.8652 this week’s base. A stop can be placed at AUD 0.8817.

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00:51 minutes
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