• 17 mins Energy CEOs See Big Payouts Despite Oil Price Crash
  • 1 hour Saudi Arabia Is Fighting A War On Two Fronts
  • 2 hours 40 Million Jobless As Pandemic Fuels Economic Collapse
  • 3 hours What Do India's Latest Reforms Mean For Its Coal Industry?
  • 4 hours Copper Glut Continues To Grow
  • 19 hours How A Pandemic Made Americans Better Workers
  • 23 hours The Trillion Dollar Space Race Crosses Another Milestone
  • 1 day Gold Prices Fall As Stock Market Sentiment Turns Positive
  • 2 days Conspiracy Theories Set Tone For 5G Cold War
  • 2 days Working From Home Will Transform The Energy Industry
  • 2 days The Multi-Billion Dollar Race For A Vaccine
  • 2 days Can Domestic Tourism Bolster Emerging Economies?
  • 2 days Australia Considers $100 Million Investment To Kickstart Mining Industry
  • 2 days Has Re-Opening The Economy Been Successful?
  • 2 days Gold Miners Still Have Massive Upside Potential
  • 2 days The Risky World Of Oil Hedging
  • 2 days Africa Turns To Innovation Amid The Global Pandemic
  • 2 days COVID-19 Sparked A Bicycle Boom
  • 2 days Will Government COVID Intervention Cause Inflation?
  • 3 days The Bitcoin Miner That Is Paid To Do Nothing
Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

Billionaires Are Pushing Art To New Limits

Billionaires Are Pushing Art To New Limits

Welcome to Art Basel: The…

Trading On The Mark

Trading On The Mark

Trading On The Mark

Our work is grounded in several technical methods. We make use of Elliott Wave, Gann techniques, Fibonacci relationships in price and time, cycles, and other…

Contact Author

  1. Home
  2. Markets
  3. Other

Australian Dollar Still Producing Good Trades

Two months ago, we posted an article here alerting traders to watch for shorting opportunities with the Australian Dollar. The trade turned out well, and the next opportunity to watch for on any time frame higher than intraday is a possible bounce from support as described below.

Stepping back to view the big picture, and starting mainly with chart geometry, we see that the Australian Dollar is testing important channel support this month. In addition, last month produced a "9" exhaustion signal from the proprietary nine-five indicator developed by Wave59. Price should react with a bounce near the channel boundary on the monthly chart, or perhaps near the 1/8 harmonic (the dotted line) below the main boundary.

AUD Futures Monthly Chart

In fact, there are reasons to believe price should poke at least slightly below the main channel boundary. The move down from the summer high does not yet look like a completed five waves (although that is not a certainty). Also, the most prominent support targets are in the area of 0.8383 to 0.8425, a bit below the early November low.

AUD Futures Weekly Chart

The uncertainty about whether minor wave v can reach the targets drawn on the weekly chart suggests that any short trade other than intraday carries fairly high risk. The better opportunity probably will be to wait for the expected wave (ii) bounce, and traders should keep in mind that it can start from higher than the support levels shown.

A similar opportunity may be approaching with the Euro, and readers can view a chart summarizing that possibility at our website.

 

Back to homepage

Leave a comment

Leave a comment