Source: www.dailyfx.com

The Australian dollar seems poised for a correction lower after posting an impressive 10.6% rally off the June 1st lows at 9582, with price action now retracing 78.6% of the entire decline off the 2012 highs made in late February. AUDUSD options show that 3-month volatility expectations have fallen below the 10% threshold for only the third time since 2008, suggesting that a near-term top may now be in place. The proximity to our topside limit at the 1.06-figure offers favorable risk-reward on aussie shorts with clearly defined downside targets now in view. AUDUSD Daily Chart A look at the … (read more)