Thursday, 11 April 2013
AUD/USD approaching potential resistance but larger degree triangle breakout calls for eventual move to 1.22 #aud
Daily chart shows AUD/USD approaching potential resistance BUT ...
... weekly chart shows the AUD/USD breaking upwards from the symmetrical triangle that began in July 2011. A measured target of approximately 1.22 is calculated by adding the widest distance of the triangle (0.17) to the breakout level (1.05). No apologies for sounding like a broken record on this one.
The 18 and 40 week simple moving averages indicate an up trend at the weekly chart timeframe. A market rally back above the 18, say above 1.32, would add confidence to the bullish view.
Worth keeping in mind that Gold is nearing long term support, as illustrated in my weekend post.
ASX 200 futures point to a cash market open above 5000 this morning, as shown on the weekly chart below. A cash market close above 5000 in afternoon would signal that the retest of the illustrated resistance turned support zone is complete, clearing the way for a rally back toward the 2013 high.
The following chart (courtesy of www.pring.com, tweaked by me) shows the paths that the Dow Jones Industrial Average would take this decade if it were to follow the trajectory taken in the average decade; or the average secular bull market decade; or the average secular bear market decade.