Australian Dollar – homing in on support

October 31, 2011

FOREX

The Australian Dollar has fallen faster than I anticipated when I wrote this morning’s weekly update. Indeed it has already crashed through two of the support levels I identified in this mornings piece. The concerns over MF Global and the massive MOF intervention into USD/JPY which has pushed the Yen 5% lower have certainly accelerated the pace at which I thought the Aussie would fall.

With this in mind I thought it important to post a quick technical update as the Aussie is now nearing very important support in the 1.0480/90 region.

Traders should keep an eye on this 1.0480 region as it would be natural for it to attract buying as it represents key uptrend channel support for the entirety of this month’s rally and a break into month end, tonight, would seriously challenge any bullish hypotheses that are out there and threaten a move back toward the start of last weeks run up at 1.0320/25. But as I always say, it hasn’t broken till its broken.

Cross posted with MacroBusiness

Please remember these are not recommendations for you to trade these are my views and I have my risk management tools and risk parameters that you do not have access to. Thus, this blog is for information only and does not constitute advice. Neither Greg McKenna nor Lighthouse Securities has taken your personal circumstances, objectives or financial situation into account. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs.

If you do need economic, investment or financial advice we are happy to help.

Please Email the team at Lighthouse at info@lighthousesecurities.com.au or Greg directly on greg@lighthousesecurities.com.au

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  1. Australian Dollar technical outlook – AUD under pressure | Lighthouse Securities - November 3, 2011

    […] too bearish just for the sake of it but the Australian Dollars break down through my target from earlier in the week of 1.0322 yesterday and then this morning’s take out of 1.0230 suggests to me we are on the verge […]

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