Aussie Breaks Big Support...Again
- AUD/USD records a 4-year low this week
- Looking for a weekly close under a key long-term retracement
Unfamiliar with Gann Square Root Relationships? Learn more about them HERE.
AUD/USD traded at its lowest level in four years this past week. The technical damage done was significant as the exchange rate broke through several key support levels including the 50% retracement of the 2008-2011 advance at .8540 and the 10th square root relationship of the year’s high near .8530. That said, AUD/USD is somewhat notorious for being a difficult exchange rate to trade on breaks and in true Aussie fashion it has undergone a formidable upside squeeze since breaking these supports to trade as high as .8614 on Thursday. Today’s weekly close should be key as a daily settlement back under .8530 should be enough evidence to confirm that the rate is ready to head lower once again. However, any strength back over .8614 and all bets are off.
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AUD/USD Chart: November 28, 2014
Charts Created using Marketscope – Prepared by Kristian Kerr
Key Event Risk in the Week Ahead:
LEVELS TO WATCH
Resistance: .8540 (Fibonacci), .8615 (Thursday’s High)
Support: .8470 (Fibonacci), .8435 (Gann)
Strategy: Sell AUD/USD
Entry: Sell AUD/USD on a weekly close under .8530
Stop: Daily close above .8620
--- Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com
To contact Kristian, e-mail firstname.lastname@example.org. Follow me on Twitter at@KKerrFX.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.