Australian Dollar Under pressure

May 11, 2012

FOREX

As we end the week the Aussie looks like a shot duck – its close to parity as I write at 1.0020 and is just 40-60 points above the target I have had for about 5 or 6 cents now.

20120511-170838.jpg

As readers know my last post was saying I think the Aussie is heading toward the 0.90 region. If we get through the target identified above on a weekly close my sense is we are on our way.

20120511-171614.jpg

You can see this longer term technical outlook, which summarizes all the fundamentals in the price action in the chart above.

There is a lot of positive sentiment and positioning which had accrued to the Aussie in the past 12 months and the unwinding, when it comes, could be brutal.

Have a good weekend

Greg McKenna
http://www.twitter.com/gregorymckenna
Sent using WordPress for iPhone

Usual disclaimer folks – this is not advice and you don’t have my stops or money management.

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