Australian Dollar Crosses Mixed


AUDCAD – The AUDCAD range continues as price is working higher from the 3/6 low of .9065. Ultimately, a triangle may be unfolding from the 1/23 high at .9397. If this is the case, then expect the consolidation to tighten and for price to remain below .9397. A break above .9397 argues that the next leg up is underway towards where wave 1 would equal wave 5 at .9620.

AUDJPY – We are still looking for a test of the 61.8% fibo of 82.09-96.47 at 87.57. As long as price remain below 92.78, we’ll look for a decline to come under 88.50 and challenge the aforementioned Fibo level and long term channel support drawn off of the June 2004 and March 2006 lows. A break above 92.78 would leave 3 waves down from the high at 96.47, which would suggest that the decline is corrective and that higher prices are in store.

AUDNZD – The AUDNZD continues to work higher from an inverse head and shoulders pattern. The “shoulders’ are at 1.1137 (12/26) and 1.1139 (2/26). From an Elliott wave standpoint, the recent rallies and decline may be a series of 1st and 2nd waves. In this instance, a 3rd wave would follow (potentially a strong rally). A break above 1.1484 exposes the October high at 1.1667. Short term support is at the 3/11 low at 1.1208 but price needs to remain above 1.1123 in order to keep the bullish bias at the forefront.