An Aussie Bounce Could Be Selling Spot

The Australian dollar is falling and so far not able to find any support.

After making a new three year low from the lackluster home-loan approvals report, the currency may finally take a break from its precipitous decline.

SHORT TERM CORRECTIVE BOUNCE?

The 60-minute chart on the Australian futures contract displays a potential ABCD reversal pattern near the .9300 handle. If valid, price may have a tentative rebound towards the .9400 region.

 

MoyaJune11.jpg

 

MORE LOSSES AHEAD

With growing expectations for the RBA to cut rates and the Fed to trim QE by the end of the year, the Aussie dollar may eventually weaken toward the psychological .9000 level.

Edward J. Moya is the Chief Market Strategist for edmoya.com, an educational website for foreign exchange and commodity traders. He has over 15 years of investment industry experience in forex, stocks, options and futures. At edmoya.com, Mr. Moya writes daily currency and commodity analysis and has authored numerous articles on trading using both technical and fundamental analysis for major financial publications. He is a contributor of technical and fundamental analysis in currencies and commodities to SFO, Market News International, and Forex Factory.

Posted in Posts

Leave a Reply

Your email address will not be published. Required fields are marked *

*

This site uses Akismet to reduce spam. Learn how your comment data is processed.