Wednesday, February 22, 2006

Aud/Usd Fibonacci Posted by Picasa

Aussie Down Under

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.