Australian Dollar Might Be Ready to Begin Next Leg of Descent

By: Trading On The Mark | Thu, Feb 27, 2014
Print Email

The monthly chart for the Australian Dollar (NYSEARCA:GDAY) (NYSEARCA:CROC) has a three-wave move into a 1 x 1 measurement up from the 2001 low. We have left the Fibonacci extension levels on the chart so readers can see how price has behaved at each level up from 2008. We also have added the Wave59 "nine-five study," which had been signaling exhaustion on the monthly timeframe from mid-2011 to April 2013. (When it returns certain values such as 5, 9, 4* and 8*, it indicates that a move is probably approaching exhaustion.)

Our assumption here is that the Australian Dollar is in the early stages of a retrace down from the high of April 2013. The first test of this idea should come within the next few weeks, as we see whether the 0.9091 resistance level holds and turns the market lower.

Australian Dollar Futures - Monthly Chart

The daily chart below shows a possible Elliott wave count that could soon lead to an acceleration lower. Even if this count is correct, wave (ii) doesn't have to be finished yet. It could go back to test the resistance level shown. In fact, the sideways/down move of recent days looks corrective, so traders probably should expect another attempt to reach the 0.9091 resistance level.

Austrlian Dollar Futures - Daily Chart

 


This article originally appeared at Trading On The Mark.

 


 

Trading On The Mark

Author: Trading On The Mark

Trading On The Mark

Staying on the right side of the market and making profits consistently is challenging, but it's what we help our members do every day on time frames ranging from intraday to swing trading. Beyond the public blog, members have access to extensive sets of charts and technical analysis for major traded commodities, as well as a live intraday trading forum where we chat with members and identify trading opportunities as they arise.

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 approaches. Most members have several years or decades of trading experience, but we also provide an environment where the dedicated newer trader can learn much that is not available in published books or found in courses.

Copyright © 2012-2014 Trading On The Mark

All Images, XHTML Renderings, and Source Code Copyright © Safehaven.com

SEARCH





TRUE MONEY SUPPLY

Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/