AUD/USD Forecast April 12, 2012, Technical Analysis

 

The AUD/USD pair bounced from the lows on Wednesday in order to signify the support level at the 50% retracement level. The pair has been sold off significantly as of late, and the downward channel in this pair looks just like the channel in the gold markets. As a result, it looks like the Aussie is acting more as a proxy of gold itself than anything else at the moment. (This isn’t totally uncommon.)

The action for the session was bullish, but this pair looks weak and vulnerable at the moment, and as a result we are less likely to buy in it as the Kiwi. (The two tend to move in the same direction.) This is mainly because of the fact that the Kiwi has held up so well. Also, there could be a short AUD/NZD play setting up as well.

Sometimes the charts will give you a clear and concise signal as to how to trade, and other times it can tell you where else to look. This one seems to be the latter of those examples.

AUD/USD Forecast April 12, 2012, Technical Analysis
AUD/USD Forecast April 12, 2012, Technical Analysis

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