Aussie set to rally?

See the latest Australian dollar analysis here:

Is the Australian dollar an America, Europe or China proxy?

From Forexlive this morning and following the RBA’s otherworldly forecasts:

Via eFX comes this: Change Your Thinking On AUD/USD; USD/JPY Chops – BofA Merrill

(And more investment bank research and trade recommendations are available at eFX)

Bank of America Merrill Lynch technical strategy team believes that it’s time to change your thinking on AUD/USD.

Evidence says that the medium and potentially long term downtrend is drawing to a close. The completing impulsive declines into multiple channel supports, bullish momentum divergences and yesterday’s massive hammer formation is a setup that is very similar to the November 2014 low in Gold,” BofA notes.

While more needs to be seen, this is a market poised to run towards 0.8250 and potentially beyond,” BofA argues.

“We will be writing more about this in the days and weeks ahead identifying upside targets and key resistance levels, but right now shorts need to start covering,” BofA advises.

David Llewellyn-Smith
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