The Aussie dollar recovered above parity, breach of the declining trendline indicating that the correction is over. Breakout of the CRB Commodities Index above 325 would be a bullish sign, suggesting another test of $1.08 against the greenback. Breakout above $1.08 remains unlikely, but would offer a long-term target of 1.20*.
* Target calculation: 1.08 + ( 1.08 – 0.96 ) = 1.20
Although this correction might be over, we could easily respect Twiggs Momentum Oscillator at zero and head back down again. Also it looks like the dollar could target a longer term downtrend on the price chart.