Attached is a 50 day chart of the Aussie Dollar ADZ2.
Despite a 25 basis point cut to 3% and uncertain growth trajectory in China's economy, the Aussie Dollar has surged to near term highs of 104.75. This highlights underlying strength of the Aussie and general weakness for the US Dollar. If we settle above 104.75 we have a positive bias and look for further upside. Once in the trade, we would place stop loss at 104.20 on closing basis.
Above is the 50-day chart of the CDZ2.
Also as per yesterdays comments in the CDZ2, we are still bullish the CDZ2 and would add to long position above 100.92 and stop out below 100.35.on closing basis.