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- After the RBA kept rates on old yesterday we had a relief rally on the AUD/USD
but don't let this confuse you between the strengths of these individual currencies. The COT
report shows short positions have been added too on the AUD and buy positions have declined, so sentiment is still strong to the downside. After FED's Lockhart a Dovish member said Rate hikes are still appropriate for September we had strength come back into the USD causing an engulfing
candle on the 4 hour chart. I am now just waiting to see a 50% pull back on that move before further downside. The pull back might not happen but it is necessary to get a 3:1 risk reward if this is not achievable then we will not take the trade.