ADU15 – September Aussie Dollar (Last:0.7196)
Author: Rick Ackerman
Published: July 28, 2015
The Australian dollar’s steep slide, now entering its fifth year, looks like it has enough momentum to reach 0.6773. Although that might be good news for exporters and tourists, it would put the country’s economy under even more strain than it has experienced thus far. Notice, however, that the futures are nearing a Hidden Pivot support at 0.7118 that could brake the fall and possibly even reverse it. It will therefore be a promising spot to try bottom-fishing, assuming it is reached. Currency traders should position themselves accordingly, using the pivot for now as a minimum downside objective. Please note as well that a retirement back up to p=0.7462 would be short-able ‘mechanically’ with a 0.7692 stop. A ‘camouflage’ entry could be used to pare the entry risk by as much as 90%. _______ UPDATE (August 9, 1:25 p.m. EDT): This presumptive dead-cat bounce has exceeded the 0.7386 midpoint pivot of a bullish pattern that projects to 0.7470. A pullback to p should therefore be regarded as a mechanical buying opportunity, stop 0.7358. _____ UPDATE (August 24): Today’s dive obliterated the 0.7118 support noted above, putting the 0.6773 target in play.
The Australian dollar’s steep slide, now entering its fifth year, looks like it has enough momentum to reach 0.6773. Although that might be good news for exporters and tourists, it would put the country’s economy under even more strain than it has experienced thus far. Notice, however, that the futures are nearing a Hidden Pivot support at 0.7118 that could brake the fall and possibly even reverse it. It will therefore be a promising spot to try bottom-fishing, assuming it is reached. Currency traders should position themselves accordingly, using the pivot for now as a minimum downside objective. Please note as well that a retirement back up to p=0.7462 would be short-able ‘mechanically’ with a 0.7692 stop. A ‘camouflage’ entry could be used to pare the entry risk by as much as 90%. _______ UPDATE (August 9, 1:25 p.m. EDT): This presumptive dead-cat bounce has exceeded the 0.7386 midpoint pivot of a bullish pattern that projects to 0.7470. A pullback to p should therefore be regarded as a mechanical buying opportunity, stop 0.7358. _____ UPDATE (August 24): Today’s dive obliterated the 0.7118 support noted above, putting the 0.6773 target in play.