Australian Dollar: Strength is coming back

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After a long time, market is finally showing some clarity here. The risk trade is on, but to be completely confirmed, we want to see a daily close above 1298 resistance region on the S&P500.

This would then confirm a new stage for a coming strength on stocks, which will also support some major currencies against the US dollar.

Guest post by Gregor Horvat

We see some very strong moves on Australian dollar, a currency that may easily become one of the strongest in coming days.

Aud/Usd, as we can see on the chart below, has reversed significantly this week from around 1.0389 region as stocks found the support. Well, looking at the substructure from 1.1 highs, move is very slow, extremely choppy and formed a lot of overlaps.

This is clearly a personality of correction! In fact, price is currently rising in impulsive fashion from the bottom, and if we get a daily close above the falling trend line, maybe somewhere above 1.06 then this will be a confirmation for further strength of Australian dollar against the US dollar.

AUD USD Elliott Wave June 29 2011

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About Author

Grega Horvat Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of Ew-Forecast, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At Ew-forecast he helps clients and educates them about the Elliott wave principle and how to label and track unfolding patterns in real time. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty, however, is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators. EW-Forecast To be involved in the market effectively, you need the right guidance and resources, and our team can help you to achieve that. Our team is providing advanced informations about Elliott Wave theory in real time. The Elliott Wave Principle gives you a method for identifying the behavior of the markets and at what points the market is most likely to turn. We help new traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our views as simple as possible with educational goal, because knowledge itself is power!

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