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Australian Dollar Technical Outlook

Thursday, 10 July 2008 14:21:36 GMT

Written by Jamie Saettele, Technical Currency Analyst

We wrote yesterday that “the AUDUSD drop from .9668 appears complete as a second wave correction.

Specifically, the drop from .9650 is in 5 waves, making it likely that wave c of the correction is complete.  A bullish bias is warranted against .9328, although price ideally remains above .9475.  We’ll look to move the stop to this level soon.”  Risk can be moved to .9475 now as the AUDUSD has accelerated higher.  Ultimately, we expect a blow-off top to end near parity (1.00).

STRATEGY: Bullish, against .9475, target above .9668 (probably near 1)

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