Commentary - We remain long term bulls of the AUDCAD and a bullish bias is warranted against .8510. The bullish objectives are not until .9681 and 1.0531 (100% and 161.8% ext. of .8119-.9514/.8271). This rally is expected to play out for the next 6 to 8 months or so. The pair may be breaking higher in wave 3 of 3 so the rally may accelerate soon. Near term support is at .8766.
Strategy - Longer term bullish against .8510, targets .9681 and 1.0531
Commentary - We wrote last week that “the AUDJPY is testing the 61.8% at 99.41 but the pattern does not look close to complete so continue to favor the upside.” The pair has continued to rally likely and it looks probable that we?ll see a push through 107.70 prior to a top and reversal. Based on where the rally is in its structure, there is a good chance that the advance from here is choppy as the rest of the rally unfolds in a series of 4th and 5th waves.
Strategy - Remain bullish, risk at 98.40, target 102.70
Commentary - The correction that has been in progress since 9/7 may be complete since the decline from the top is in 3 waves. Still, given the time relationship between the impulse and the correction and given that the 5th wave is extended, we favor a deeper correction to 1.1331 before proclaiming wave 2 complete. A cautious bullish stance is warranted against 1.1592 regardless.
Strategy - Get bullish close to 1.1340, against 1.0906, targeting above 1.2030 (much higher)