Coverage of all major currencies and the US Dollar Index.
The Australian Dollar continues in a downward trend against its Kiwi counterpart. Recovery above $1.26 would test the upper channel at $1.28, but breakout below $1.23 is just as likely and would continue to test the lower channel border.
* Target calculation: 1.28 – ( 1.32 – 1.28 ) = 1.24
The Australian Dollar broke support at $1.04 against the greenback, signaling a correction to the long-term trendline. Support at parity has so far held and recovery above $1.045 would indicate another test of $1.10.
* Target calculation: 1.04 – ( 1.10 – 1.04 ) = 0.98
The Dollar Index has consolidated between 73 and 76.50 for several months. 63-day Momentum holding below zero indicates a strong down-trend. Breakout below 73.50 would warn of another decline, with a target of 70*. Recovery above 76.50 is unlikely, but would signal reversal to an up-trend.
* Target calculation: 73 – ( 76 – 73 ) = 70
The Aussie dollar displays a similar long tail to the ASX 200, indicating that buying support on the Australian stock market came from international, not local, buyers. Dolphin tells us that institutional buyers moved in when AUD fell below parity against the greenback.
