Fading Glenn Stevens' Comments as EURAUD Hits Resistance

Glenn Stevens of the Reserve Bank of Australia made some comments favoring a weaker Australian dollar that presumably contributed to a decline in AUDUSD. Of course, central banks talking down their own currencies in the wake of the 2008 financial crisis is nothing new. And while it may have created a noticeable short-term effect, I think it will hardly be remembered, and will not be visible on the price action in the charts to come.

The comments from Stevens caused AUD to tank, running right into support (or resistance on pairs where AUD is the counter currency). I'm seeing candlestick weakness, resistance, a 50% Fibonacci retracement, and a 50 SMA all lining up for EURAUD. As such, I'm short at 4597, with my stop at 4673 and my target profit at 4122. I'm risking 76 to gain 475, giving a reward/risk of 6.25.

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