AUDUSD finally made it above .9000! Big cheers all around as it reached an overnight high of .9046. I had a tiny long that hit profit at .9004. Given all the huffing and puffing to get to this level, I’d expect it to fall back a bit, perhaps to the .8800 level or just below. At that point, my calculations indicate it could go higher—possibly .9160, up to .9480 then .9520. None of this is guaranteed, of course. It still hasn’t worked out its negative divergence on the daily chart. Divergence is all over the place these days and it’s not a great sign.
Here’s the hourly point and figure (P&F) chart which is remarkable only for the clear patterns it built on the way up—climb, consolidate, climb, consolidate. It needs to fall below at least the internal trend line before anyone gets too bearish.
Equity futures are bidding up this morning as of 7AM EST. Might be a bad day for the buck.
© Dianne Fecteau, 2009. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.
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