Where is the aussie dollar going?
In a word, UP.
A friend who originally got me started on trading sent me a message about how he thought there was going to be a big AUD retracement when it reaches approx 0.92. I’ve told my wife a couple of times recently that I expect the AUD to get to par with the USD… with nothing really to backup my thoughts other than the CAD recently broke through PAR. I just had a look on a weekly chart to see what I could see to backup my thoughts from a technical perspective and see why the 92 cent mark would have a retracement and damn check out the weekly chart below. In particular notice the red line at the top of the screen, that is the 161.8 fib projection of the 2001 lows to the 2004 highs, is that a spooky round number or what! If you take current trendline and project it upwards it projects par at the end of May next year.
It’ll be interesting to see how this plays out, I suck at trading the aussie dollar so not sure how well I’ll profit from it.
Filed by Popeye at October 26th, 2007 under Finance, FOREX, Trading