Australian Dollar: Room For Possible Correction Today
Carol Harmer | Sep 02, 2014 03:38AM ET
The Aussie fell lower although it's now oversold on the short term charts.There is room therefore for correction today and we would be looking at a test of the daily pivot at .9334. Overnight, we have already been to .9336 but I think Europe and the US will want to see this level again.
By buying the market up to here it would ease the oversold scenario evident on the short term charts and allow sellers back into the market who would be looking at the medium term charts and seeing them as bearish. We would at this point be looking to sell into strength. Use up to .9334/36 as a guide to re-enter the market. You can place stops on shorts quite close to, say, the .9355 area, just above here. This should allow for the stop hunters.
Now support is located at .9275. If we break below this area it would wipe out any short term correction and leave the market well placed to come lower with the .9235/9210 support looking viable.
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