Nomura FX Strategy Research notes that AUD/USD has touched a multi-year high before correcting slightly lower but market participants are seemingly willing it to break higher again.
“From a fundamental perspective, we remain of the view that the rally in the AUD/USD is on shaky foundations, and the market looks to be pricing in too much positivity on the AUD side and across broader risk markets,” Nomura argues.
“Rather than lean against the current move in spot, which is susceptible to a further near-term squeeze higher, we thinkoptions is preferable,” Nomura advises.
Nomura recommends short AUD via an AUD/USD 2m 0.7670/0.7530 put spread.
Source: Nomura Securities Research
The article is published by one of the foremost sources of Forex trading information. Link to the original article above.
from Online Forex Trading Resource
View thesource article here