Australian Dollar Crosses: Strength To Continue

Daily Forex Technicals | Written by DailyFX | Sep 26 08 02:15 GMT |

The Australian Dollar crosses are consolidating following large rallies from significant lows. The consolidation should lead to additional strength. AUDCHF I showed the daily chart last week and longer term downtrend, mentioning that 'as long as price is below the line drawn off of the November 2007 and July 2008 highs, the trend is considered down. Potential resistance is in the .9320-.9616 zone.' A correction is underway as there are 5 waves up from .8620. A B wave is underway now and may be complete .8992. Coming under there should find Fibonacci support at .8950 or .8871. Wave C would then end above .9293. .9476 is the 61.8% of 1.0047-.8620 and is potential resistance. AUDCAD The long term triangle appears to be playing out. 'The AUDCAD will eventually drop below the 2006 low of .8118 to complete wave C of the triangle.' The rally from .8386 is considered corrective but may not be the entire correction of the drop from .9853 since the rally failed to retrace even 38.2%. Favor the downside as long as price is below .8878 but be cognizant of the fact that a larger correction could play out and reach .9090 or .9265 (50% and 61.8%). AUDNZD The AUDNZD rally from 1.1811 is probably a 5th wave that will complete a larger C wave before a significant top and reversal. The advance should continue over the next several weeks (and perhaps longer) and break above 1.2968 DailyFX Disclaimer Investment in the currency exchange is highly speculative and should only be done with risk capital. Prices rise and fall and past performance is no assurance of future performance. This website is an information site only. Accordingly we make no warranties or guarantees in respect of the content. The publications herein do not take into account the investment objectives, financial situation or particular needs of any particular person. Investors should obtain individual financial advice based on their own particular circumstances before making an investment decision on the basis of the recommendations in this website. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. All intellectual property rights are the property of Daily FX. Daily FX and its affiliates, will not be held responsible for the reliability or accuracy of the information available on this site. The content herein is provided in good faith and believed to be accurate, however, there are no explicit or implicit warranties of accuracy or timeliness made by Daily FX or its affiliates. The reader agrees not to hold Daily FX or any of its affiliates liable for decisions that are based on information from this website. Daily FX highly recommends that before making a decision, the reader collects several opinions related to the decision and verifies facts from at least several independent sources.