The Aussie dollar has gotten a strong boost from rising oil prices and will likely go even higher if my bullish forecast for crude proves correct. Yesterday’s spiky rally fell somewhat short of the 0.7963 midpoint pivot shown, but if and when it’s exceeded the futures would become an odds-on bet to reach the ‘D’ target at 0.8161. A similarly bullish projection holds for the Canadian Dollar, which also benefits from rising energy prices. However, its chart is not quite as compelling as this one, lacking as it does a clear and powerful impulse leg like the one shown. _____ UPDATE (9:59 p.m. EDT): A long to 0.7963 would have produce a nice gain, but the swoon that followed yesterday’s high at 0.8014 would likely have stopped out the prudent bull. The 0.8161 target remains valid nonetheless.
