Thursday, 5 April 2012

AUD/USD tests apex level and Fibo 0.618 retracement

The first chart shows the AUD/USD testing the level of the apex of the triangle that formed in the months following the July high, a level commonly tested following a break from a triangle, prior to a trend developing in the direction of the breakout (up in this case).

The second chart zooms in to the most recent rally, from the December low, and the decline from the late February high. It shows that the AUD/USD is testing the 0.618 Fibo retracement level of the rally. It also shows a birds-eye view of yesterday's Elliott Wave count that suggests the decline is a correction, which if correct implies an impending rally to above the late Feb high. The rally could be underway already.

S&P 500 and EUR/USD - watch those lines

1 hour or so after the close of New York trade.

S&P 500