Despite weaknesses starting to appear in the Australian economy, an already week Euro has been retracing over the last three weeks and now looks set to continue its winning position in the race to the bottom. Correlation with pairs such as the GBPAUD, show that the Aussie is due a retracement of its own anyway. The technicals are all there as highlighted on the chart. But with the Aussie Rate decision occurring within the next 30 minutes anything could happen!
Assuming a more Hawkish than expected announcement and a simple retracement of the Aussie, I suggest that for any of you planning on a bear chase, you don't go any lower than 1.4000 for your first profit target, which despite being a nice round psychological support level, also coincides nicely with the 0.618 retracement of the current short-term uptrend.
Assuming a more Hawkish than expected announcement and a simple retracement of the Aussie, I suggest that for any of you planning on a bear chase, you don't go any lower than 1.4000 for your first profit target, which despite being a nice round psychological support level, also coincides nicely with the 0.618 retracement of the current short-term uptrend.