Aussie is coming down from the start of the year and it appears that this weakness can stay in play for a few more weeks as pair made only three wave rise to 0.6666 March high. It can be a corrective move, part of a complex wave B which can possibly form even a triangle while 0.6666 high holds. It's still a bearish pattern, but its incomplete for now, as waves "E" can still be get a bit higher. So after that wave "E" rally, we think more weakness will show up for the aussie which we think will still stabilize sometime this year at 0.64-0.6450.
Also, with CB turning dovish, I think Aussie will be closely watched this week with inflation data on Wednesday when speculators can put out their new bets regarding the RBA rate decision. Data in recent months showed that inflation is slowing down, so if this path remains unchanged after Wednesday, and if CPI comes at 3.4 or lower, then RBA can follow other dovish CB, and as a result, aussie can drop.Â
I talked about this and lot more in our video today.Â
Grega
*source www.wavetraders.com
On the date of publication, Gregor Horvat did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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