AUD/USD trips stops 0.9390+, 0.94 offers into play

FXstreet.com (Barcelona) - AUD/USD has been enjoying strong buying interest in the last 3 hours as the Shanghai equity market surges above 1%, mainly driven by optimistic views over last week's third plenum reforms in China.

Earlier on the session, it was noted that in general, the sentiment towards the AUD remains bearish, however, an extension to the upside should not be ruled-out, with option expiration levels at 0.9350/0.94 now out of the way, stop rumored above 0.9390 targeted and Chinese shares on rally mode, a perfect intra-day bullish storm to extend the correction towards 0.94.

According to Jim Langlands, Founder at FXCharts: "For the time being, continue to use the current consolidation between 0.9250 and 0.9400 as a guide. I don’t see much to change this outlook and while I would still be trading, – in the short term – from the long side, the medium term outlook remains for another run at 0.9250 and eventually towards 0.9000."

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