Aussie and Kiwi led the US dollar pairs lower in overnight sessions coming in 0.48% and 0.58% lower, respectively, at the London close. The commodity currencies had a lot of help from the offered yen crosses, such as NZD/JPY (-0.83%), and AUD/JPY (-0.76%). The combination of a slightly bid US dollar across the board, and heavily offered commodity currency/yen crosses brought our short AUD/USD from out 0.7895 entry to within 10 points of our 0.7835 target. Considering our original 20-point loss, a 0.7835 target fill will put a reward that is three times the original risk in your pocket. Spot gold also dropped a quick $10/oz from our $650 level following a dollar-bullish ISM Non-Manufacturing Survey, further helping our Aussie shorts.

Trail your stops to just above 0.7870 for the full push down to .618 retracement, Wave 3 low at 0.7835.

Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.

Disclaimer
The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.