The Australian Dollar (-0.53%) has been giving back strength since mid March’17 as commodity prices have disappointed and major business partners like China have shown a lesser appetite for Australian products and resources.
In the longer term momentum looks weak with the possibility of price now it looks to have broken some key Fibonacci / resistance levels possibly targeting another important Fibonacci target at 0.721? Price since Mar 2016 has been playing in a volatile range between 0.77 and 0.72, so a test at those lows may prove significant. If price does find support at those lows then the chances are price will head once more back into this range.
In the shorter term ahead of todays budget, AUD looks to be holding between the S2 and S3 pivots around the 0.73’s (also just above a longer term Fibonacci support line), waiting on its outcome before deciding to take another move.
Chart of the day: Copper (HG) With the Trump trillion Dollar infrastructure plans going a bit quiet, extra demand for Copper is still being drawn from China and from industries / corporations such as those dealing in electric battery technology. Technically, using the Renko charts for clarity, the price has been caught in a triangle pattern around 2.72 which in LME numbers is approximately the key psychological level of 6000. A break above here could see the previous up trend in late Nov/ Dec ’16 replicated, which would have a target of between 3.1 on the Fibonacci extensions and 3.2 from the prior trend which in LME terms gives a target number of roughly 7000. Downside support 2.47 (5400’s) then 2.31 (5100’s).
