The AUD/USD has confirmed yesterday's upside breakout of the declining wedge pattern in place since last September. If the AUD can hold and move away from .6488 we should see a test of .6800 in quick time. However, strong resistance exists at .6800 and .7200. The Australian dollar is a good proxy for global growth and risk appetite, a strong breakout also bodes well for continued short term stock market strength. Despite the more positive short term outlook, systemic issues in the financial, economic and political landscape have not disappeared, they are actually getting worse. Any rally in risk related assets such as AUD and the stock market is likely to dissipate by May. Trade for short term profits selling in to strength through April.
Posts
0 comments
Post a Comment