Being open, today has been a really choppy day on the indexes I have completely struggled to find an entry that has left me in a trade for longer than 20 or so minutes. I’ve taken a few S&P points here and there and lost a couple as well. Basically a break even on the indexes. A nice day on the Treasuries again for a swift $400 profit.
Days like this happen. That’s life. Still a profit but not a good one. Our new auto-trader (in test for release shortly) would have broken even on the S&P as at the time of writing but made nice profits on GBP/AUD (long). GBP/AUD is now largely a function of the biggest one-way bet on currencies at the moment – the decline and further decline of the Australian dollar.
Check this chart out. This is weekly. And the price is now in a zone (marked in yellow) where we forecast the price would go as long as NINE weeks ago.
So where from here? Goldman Sachs has said it sees the AUD ending the year at 0.72 by year-end. Well, to be honest, that’s not far off now, is it? We have a row of support at 0.75 on the weekly chart but will it hold? If it doesn’t then the 0.72 could be this week or next. That’s a massive decline since February.
Look at the weekly chart below ….. it says it all. I’m now shortly going to start assembling a nice long position. I will start soon (note – SOON, not today). And with luck the 0.75 level may hold and we can head back towards the 0.79 or higher level,