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The Australian dollar has enjoyed some time in the sun, but there is confusion about the next move.

The team at Goldman Sachs sees a 4 wave corrective squeeze:

Here is their view, courtesy of eFXnews:

AUD/USD has come into some support as of late as the pair could be about to start a 4th wave corrective squeeze, notes Goldman Sachs Techs.

“Wave 3 has met a 1.618 extension target from the May high at 0.6933. Momentum has stabilized and turned higher,” GS adds.

“If this is truly a 4 th wave correction, it should ideally top somewhere near 0.7192-0.7260 where the trend across the highs since Jun. 8 th , 38.2% retrace of the length of wave 3 and the previous lows from July/August all converge,” GS argues.

“Bottom line, 0.7192-0.7260 should provide an attractive place to re-consider bearish exposure. Anything higher than this level would likely warn of a more serious reversal,” GS advises.

 

AUDUSD technical chart September 2015 Goldman Sachs wave analysis

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