We maintain our stance that a multi-year top is in place at 1.0823. The down-up sequence from 1.0823 to .9508 to 1.0135 is waves 1 and 2. The top of wave 2 at 1.0135 is the bearish line in the sand but resistance should be strong near .9868 (78.6% of 1.0135-.8879).
We have been bullish on the AUDCAD for months and we still are longer term bullish but expect a sizeable countertrend decline to play out over the next few weeks / month. The choppiness of the advance from the 8/17 low at .8271 may be a leading diagonal as wave 1 of larger 3. .9086 may act as a strong support level. Short term traders can look to short against .9695 for a run at .9086.
Over the past weeks (and probably months), we have been showing the AUDNZD daily chart, explaining that we expect the pair to exceed 1.2091. We are showing the weekly chart now to illustrate just how much bullish potential exists. Not only should the AUDNZD exceed 1.2091 but it should also exceed 1.2447 in the coming months. Expect a corrective setback in the next few days to reach 1.1650/1.1750. The bull trend is intact as long as price is above 1.1334.
[B]Tell us what you think about this report: contact the strategist about the article at <[email protected]>[/B]
[B] [B]TREND ANALYSIS[/B] is based on a rolling pivot model. LONG TERM TREND is determined by the last 3 months of price data (high, low, close). SHORT TERM TREND is determined by the last 4 weeks of price data (high, low, close). R3, R2, R1, PL, PH, S1, S2, and S3 are provided to aid in identifying entries and exits. These are objective measures and our subjective analysis (STRATEGY) may differ.
[B]SCHEDULE[/B]
Monday: EURGBP, EURCHF, EURCAD, EURAUD, EURNZD
Tuesday: EURJPY, GBPJPY, CHFJPY, CADJPY, AUDJPY, NZDJPY
Wednesday: GBPCHF, GBPCAD, GBPAUD, GBPNZD
Thursday: AUDCHF, AUDCAD, AUDNZD
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