The Aussie Dollar found short-term support at $0.91 against the greenback. Expect a rally to test the descending trendline and resistance at $0.93. Respect of the trendline is likely and would warn of a down-swing to primary support at $0.89. The peak below zero on 63-day Twiggs Momentum signals continuation of the down-trend. Breakout above $0.93 is unlikely, but would suggest that the down-trend is ending. The RBA needs a weaker Aussie Dollar, without lowering interest rates, and will do all it can to assist the decline.
* Target calculation: 0.91 – ( 0.93 – 0.91 ) = 0.89
Aussie breach of support at $1.12 against its Kiwi neighbor, warns of a primary down-trend. Retracement is likely to respect the new resistance level and would confirm the down-trend. Follow-through above $1.13 is unlikely but would warn of a bear trap. The peak below zero on 63-day Twiggs Momentum signals continuation of the down-trend. Target for the decline is $1.08*.
* Target calculations: 1.12 – ( 1.16 – 1.12 ) = 1.08
Short term down, medium to long term up