Aussie Traders Face Reality Check

Formerly optimistic Swiss Franc traders are beginning to realize that the Australian economy cannot support such lofty price levels at this time.

The AUD USD continued its short-term break as traders are becoming more averse to risk since the global equity markets topped late last week. This move could continue to the downside as formerly optimistic traders begin to realize that the Australian economy cannot support such lofty levels at this time.

As long as the Aussie economy remains weak and trader appetite for risk declines, then look for the AUD USD to continue down until it reaches a more realistic valuation area. The charts indicate that this area is between .7266 to .7198.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More

Disclainer: