The Aussie Dollar followed commodities higher, breaking through $1.06 to signal a test of resistance at $1.10. 63-Day Momentum holding above zero suggests continuation of the up-trend. In the long term, breakout above $1.10 would offer a target of $1.20* — though this is only likely if we see more quantitative easing from the Fed.
* Target calculation: 1.10 + ( 1.10 – 1.00 ) = 1.20
The Aussie Dollar is testing the upper trend channel against its Kiwi counterpart; breakout would warn that the down-trend is weakening. Reversal below $1.245 would warn of a test of the lower trend channel.
* Target calculation: 1.24 – ( 1.28 – 1.24 ) = 1.20