Strategy: Long, looking for a corrective rally toward 0.7450

Jack Crooks Black Swan Capital

Analysis/Comments: The Aussie has fallen a whopping 12.9% this year. Yikes. The idea of a trade war between the US and China has not been good for the currency; as Australia to a large degree is somewhat of an extension of Chinese growth. Guided by Occam's razor (the simplest solution is usually the best solution) I have simplified this chart labeling; and it shows the key extension target to the most recent low at 0.7081 (0.7083 actual low); as seen more clearly in the 240-min chart (next page). A corrective rally in Wave B is shown carrying to 0.7450, or a 61.8% retrace of Wave A. So, 0.7450 is our new target; not 0.7500.

Author

Jack Crooks

Black Swan Capital

Experience Jack has over 30 years of experience in the currency, equity, and futures arena. He has held key positions in corporate financial analysis, brokerage, investment research, money management, and trading.

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