The Aussie Dollar retreated from resistance at $0.91 and is likely to test medium-term support at $0.89. Breach of support would test the primary level at $0.87, while respect would favor another attempt at $0.91. The primary trend is down and failure of primary support would offer a target of $0.83*.
* Target calculation: 0.87 – ( 0.91 – 0.87 ) = 0.83
The ASX 200 followed the Aussie lower, retreating below 5450 on the daily chart. Retreat of 21-day Twiggs Money Flow below zero would complete a bearish divergence, warning of a correction. Failure of support at 5350 would confirm. The primary trend remains upward and only breach of support at 5050 would signal a reversal.
* Target calculation: 5400 + ( 5400 – 5000 ) = 5800
ASX 200 VIX below 15 continues to indicate low risk typical of a bull market.