Bullish Aussie

By: Colin Jessup

Today the North American markets saw their biggest gains in 2.5 years, all due to a decision from 6 major banks in an effort to prop up the world economy...and the 6 'cousins' are all correlating in the right ways for further movement. But, as is clear from looking at a USD/JPY daily chart, interventions like this rarely work for long...if at all. That said, the Aussie daily chart was already starting a bullish move off of the weekly support level of 0.9700. Price ended a 3 week bearish fall on Sunday at 0.9663 and has been bullish ever since. Now, we have closed above another strong weekly S/R zone at 1.0171 as well as the daily moving average at 1.0180. As log as this level can hold we should see a push for 1.050 and then possibly last months high at 1.0752. After such a strong move in one day however, it is quite possible that we will see some retracement before heading higher. If we do, look for support at 1.001 and again at 0.9985 before seeking the previous mentioned support zone at 0.9700 again. I am cautiously Bullish on this pair.