The Australian dollar fell out of bed last night as equities fell, emerging market sentiment waned and so called risk assets generally just turned to “off”.
It sits this morning at around 1.0530 having made a low at 1.0524 earlier this morning.
Where to now?
On the hourly chart it looks a little over sold:
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But on the dailies it is only just breaking down as you can see in the next chart:
1.0387 looks like a natural magnet now. I’m not getting too bearish but my double Bolly Band strategy is still short as I noted yesterday.
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Have a great day
Gregory McKenna
www.twitter.com/gregorymckenna