Currencies: Technical Strategies

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Has the Aussie Found Bottom?
Wed, Oct 22 2008, 20:29 GMT
by Andrei Pehar
fxKnight.com
The AUD/USD pair has shed over 3500 pips in a dramatic
sell-off which has lasted since July. Have we finally found a bottom?
Currently, the Aussie is ranging between the 161% Fibonacci level at 0.6537 and
the 138% Fib level at 0.7019 - what happens next very much depends upon which
side of this range price eventually chooses.
If we break above 0.7019 and successfully re-test that level as support, then
we may eventually see price rise to 0.7801
If, on the other hand, 0.6537 fails to hold as support, and we successfully
re-test that level from below as resistance, then we could well see price drop
further -perhaps as far as 0.5755, or if that level breaks, then 0.4491

Published on
Wed, Oct 22 2008, 20:39 GMT
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