Australian Dollar technical outlook – Nearing important support

November 10, 2011

FOREX

The Australian Dollar is under intense pressure from an unfriendly world which looks to be building into a perfect storm for the worlds bellwether growth currency. It has sold down through the support i talked about earlier in the week and remains biased lower.

As you can see in the chart below it is at a critical  juncture right here in Asia today and needs to hold the old uptrend line and down trend line that are intersecting 1.0116 region in order for this cascading fall not to turn into a rout. 

This is just a quick technical update but my view as articulated  on a fundamental outlook is that this is a decidedly unfriendly fundamental outlook for the Australian Dollar and my feeling is that the technicals are turning the same way.

Support at 1.0116 (MAJOR), 1.0101 (hourly target- fibo extension), 1.0077, 1.0020/30 (38.2% of the bounce from 0.9388) and then 0.9914 (38.2% of the bounce from 0.9388). It feels like IF this big level on the intersection breaks the Aussie is in for some serious selling.

 www.twitter.com/gregorymckenna

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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