The French have a wonderful way with words. How much nice the headline sounds than the translation – “the more it changes, the more it’s the same thing”. That’s definitely the case right now for the Aussie Dollar. Its being smashed almost everywhere, despite increased talk of global growth (normally a driver for the Aussie to go up).
Daily it is battered and is sitting precariously now on the edge of the swarm, right on the micro swarm marked below. The negative sentiment around this currency pair remains, and whilst I can see no reason to buy AUD right now, there as to be a chance that it will bounce a little from these levels shorty. Not ready to trade but worth watching on a daily basis.
The weekly chart is a different story altogether and offers little to be short-term optimistic about. The Aussie dollar has been battered here for several weeks but is approaching a significant low. Again careful monitoring of this would pay dividends if we see a turn shortly.
And finally, have a look at the Nasdaq chart. Nasdaq gapped open last night and I had a trader on the line to me asking what he should do about his weekend hold of a short. Apart from saying “don’t do that” I pointed out we had daily support at 60 (arrowed on chart) that had held the market twice but been tested and was likely to be tested again. And so it was. He got out for a scratch trade and could go to bed in the USA and actually sleep instead of worry about a few contracts short. He’s going to become an excellent trader and I was pleased he didn’t panic.
And now …. back to the markets. If this sort of weekly overview interests you then you will enjoy our soon to be launched daily video forecast and live video room. It will be cool.