Home AUD/USD: Ideal Sell; DXY, EUR/USD: Breakout; – Goldman
AUD/USD Daily Outlooks, EUR/USD Daily

AUD/USD: Ideal Sell; DXY, EUR/USD: Breakout; – Goldman

A new month  begins and it seems that the  dollar bulls are ready to rage.

The team at Goldman Sachs highlights the Australian dollar and the euro as major contenders for trades. Here are their views, targets and charts:

Here is their view, courtesy of eFXnews:

As the USD Index appears to be breaking out, a close above 95.86 should further confirm this, notes Goldman Sachs.

“95.86 is 50% of the Jul. ’01 to Mar. ’08 decline.  Once the market is able to clearly break through this pivot, chances of it continuing its underlying trend should increase significantly,” GS argues.

From then on forward, the target should be up at 102.50. This projection is derived from the triangle like pattern which developed from Mar. ’08 to Oct. ’14. Historically, these types of triangle break-outs have worked very well on the DXY (see late-’90s example),” GS adds.

AUDUSD March ready to sell Goldman Sachs oscilliators turning sharply lower

Same for EUR/USD where GS notes that it’s looking heavy again after breaking below 1.1237; 61.8% retrace of the ’00/’08 rally.

There is very little support remaining below there until ~1.03-1.01. The psychological 1.10 pivot should also be watched as a confirmation level,” GS projects.

“From an Elliott wave perspective, it appears EURUSD is in the final leg of an ABC correction that started in ’08. The ideal target should really be down at 1.0286-1.0103. This is where 76.4% retrace from the ’00 low and an equality target off the ’08 high are converged,” GS adds.

Australian dollar monthly oscilliators are extremely low Aussie greenback

Finally, GS notes that AUD/USD is trading underneath its Sep. ’14 downtrend and 55-dma.

“It has also risen in an ABC manner which again indicates that the move higher is a corrective one.  In addition, it formed a bearish key day reversal on Thursday on a marginal new high,” GS adds.

As such, GS thinks that AUD/USD is currently around the ideal level to establish bearish exposure with a daily close stop above the Sep. ’14 downtrend; currently 0.7917.

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Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.