Reversals from depressed levels in the Australian Dollar crosses present short term bullish opportunties.
The AUDCHF has rallied over 500 pips from the low earlier this week. Still, as long as price is below the line drawn off of the November 2007 and July 2008 highs, the trend is considered down. Potential resistance is in the .9320-.9616 zone.
The long term triangle appears to be playing out. “The AUDCAD will eventually drop below the 2006 low of .8118 to complete wave C of the triangle.” The AUDCAD fell to .8388 before reversing (today). This rally should reach at least .8944 (38.2% of .9842-.8389).
Last update, I wrote that “the AUDNZD should turn up from above 1.1791 in order to complete a 5th wave in the 5 wave bull sequence from 111.46.” The low yesterday was 1.1811 and the pair is now above 1.21. The advance should continue over the next several weeks (and perhaps longer) and break above 1.2968 before a more significant top forms.
Jamie Saettele writes Forex Technicals: The Day Ahead, Monday-Thursday (published at 6 pm EST), Daily Technicals every weekday morning (9 am EST), COT analysis (published Monday mornings), and analysis of currency crosses throughout the week. He is also the author of Sentiment in the Forex Market. Contact at jsaettele@dailyfx.com
Jamie Saettele writes Forex Technicals: The Day Ahead, Monday-Thursday (published at 6 pm EST), Daily Technicals every weekday morning (9 am EST), COT analysis (published Monday mornings), and analysis of currency crosses throughout the week. He is also the author of Sentiment in the Forex Market.
Contact at jsaettele@dailyfx.com