As mentioned a few weeks ago, the technique of the Ichimoku cloud has guessed right in predicting the return of EURAUD in area 1.50, as well as that of AUDUSD up to area 0.82; the last one is always closer to a support zone that could at least facilitate a more favourable stage for the Australian dollar.
As we can see from the graph, two Fibonacci retracements lie between 0.7950 and 0.7930. The 50% of the entire bull market started in 2001 and the 61.8% of the rise started in 2008. If we add this to a net short exposure by the hedge funds that is becoming compatible with the formation of an important primary low, we will have to closely monitor the progress of Aud in the coming weeks to evaluate a tactical entry strategy (graphic source: Bloomberg).
As we can see from the graph, two Fibonacci retracements lie between 0.7950 and 0.7930. The 50% of the entire bull market started in 2001 and the 61.8% of the rise started in 2008. If we add this to a net short exposure by the hedge funds that is becoming compatible with the formation of an important primary low, we will have to closely monitor the progress of Aud in the coming weeks to evaluate a tactical entry strategy (graphic source: Bloomberg).
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