currency crosses

Australian Dollar Crosses Approach Important Resistance

Friday, 12 June 2009 16:21:36 GMT  |  Jamie Saettele, Senior Currency Strategist

-AUDCHF Fibonacci resistance at .8880
-AUDCAD testing resistance line from October
-AUDNZD sights still on 1.3000

Australian Dollar / Swiss Franc


The multi month AUDCHF rally (which is choppy and corrective in nature) is nearing the 61.8% retracement of the entire decline from 1.0091; at .8882.  This is a potentially significant level that could see a reversal.  Signs such as RSI divergence warn of a reversal as well.

Australian Dollar / Canadian Dollar


While additional upside seems likely, there are warning signs (such as RSI divergence) that the AUDCAD rally is also unsustainable.  The pair is testing resistance from a line extended from daily highs in October, January, and April.  A push above there exposes the 78.6% retracement of the decline from .9853; which is at .9274.

Australian Dollar / New Zealand Dollar


The AUDNZD decline that ended just shy of the 61.8% of 1.2009-1.2949 at 1.2360 may have been a small second wave within an ongoing impulse from 1.2009.  The larger trend is bullish above 1.2009 and a break through 1.30 is expected.  Price ideally remains above 1.2380.


Jamie Saettele publishes Daily Technicals every weekday morning (930 am EST), COT analysis (published Monday mornings), technical analysis of currency crosses throughout the week (EUR on Tuesday, JPY on Wednesday, GBP on Thursday, AUD on Friday), and the DFX Trend Index every day after the NY close.  He is also the author of Sentiment in the Forex Market.
   
Please send comments about this report to jsaettele@dailyfx.com

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