by Gabriel Andre on August 21, 2009
For those who plan to visit some relatives in UK during the next few weeks or if you just want to trade FX pairs, this may interest you. The following chart represents the evolution of the parity of the Australian Dollar against the British Pound (AUD/GBP).
In our last analysis (Money Morning dated May 26), we were expecting a correction to 0.44 after the currency pair had peaked and started correcting. The level of 0.44 corresponds indeed to the 50% Fibonacci retracement ratio of the bullish trend occurred between October 2008 and May 2009 (between points A and B on the chart)…
Surprise move
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by Gabriel Andre on August 18, 2009
As the different Australian indices have peaked last Friday and have turned bearish, the blue chips and popular stocks are likely to correct during at least the second fortnight of August. The Westpac stock (ASX: WBS) has peaked to $24.79 (point D on the chart) at the end of last week and fell back to $23.88 yesterday.
There are many technical indications that clearly argue for a strong correction, and the next target on the downside is well identified.
Sharp correction expected
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by Gabriel Andre on August 12, 2009
After the price action recovered during the first half of 2009 from a terrible second half of 2008, it plunged back in late June this year. Now the price is trading around 330 cents and is likely to fall even lower, probably to the level of $305. Remember, between early December and the first fortnight of June, corn prices had jumped back by 48%. They reached a high price of 450 US cents on June 10.
During this 6-month bullish period, the price action was backed by an ascending oblique support line. This support line goes through the low of last December (point A on the chart) and through the higher lows posted in February, March, April and June (points B, C, D and E).
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by Gabriel Andre on August 5, 2009
The Aussie Dollar (AUD/USD) just reached a 10-month high as the currency pair climbed above 0.8450. It has retraced a large part of the plunge occurred last year, when it fell by 39% in just 3 months, which is absolutely huge on the FX markets.
The extreme points of this large decline are points A and B on the weekly chart…
Aussie dollar poised to correct
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by Gabriel Andre on July 31, 2009
What’s new on the FX markets? What is the current US Dollar direction? The US Dollar index is a good synthesis and gives a pretty good snapshot of the current trends.
Let’s take the daily chart. The index has just reached a key level. This level is a support line around 78.5 and is the last Fibonacci retracement ratio (the 61.8%) of the rise occurred between points A and B on the chart. Point A is the inflection point where the Greenback started bouncing firmly last year at mid-July. From this low of 72.11, the index rebounded to a high of 89.71, posted in last March (point B). This 24% uptrend was backed by an ascending support line (green line) that was eventually cleared in late April this year.
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