Wednesday, February 22, 2006
Much to the chagrin of gold enthusiasts, gold has pulled back over the past 5-10 days and showing uncertainty in the advance in the past 4 days. The AUD is following in uncertainty and indecision. We have a cross over on the MACD and a downward trending RSI. If the AUD/USD continues down, I would expect a move 0.7241 or 110 pip move from where we are at right now. I feel I am jumping the gun a little bit with the breakout action on the aussie has occurred after the close of the day and before the Australian market opened. The risk to reward is good with a stop loss at 0.7410. There is some support near 0.7275 that would justify a tightening of the stop loss or profit taking if the pair reaches 0.7275.