Australian Dollar Crosses are Bullish Near-Term


AUDCAD - A correction is unfolding following the 5 wave rally from .8123-.9519. We do not know what type of correction is unfolding but since this correction is a larger second wave, it is likely that the correction will be sharp. As such, the decline from .9519 is most likely just the first leg of a correction (A-B-C). Fibonacci resistance begins at the 38.2% of .9524-.9016 and stretches to the 61.8% at .9329. We are looking for this rally to extend into Fibo resistance before a C wave decline drawn price under .9020. A bouncing AUDCAD fits with a bouncing USDCAD as well.

AUDJPY - A triangle seems to be forming in the 4th of the 3rd wave position. As such, we are looking for a thrust higher from the triangle (above 100.06). The triangle scenario remains favored unless price comes under 97.43. The 20 day SMA is support at 99.13.

AUDNZD - The AUDNZD has been trading sideways since September 2006, primarily between 1.1054 and 1.1485. With the pair most recently bouncing from the lower end of the range, momentum is pointed higher. The 200 day SMA reinforces resistance at the upper end of the range (1.1432).