Australian Dollar

Chart courtesy of Metastock. Data provided by Quote Center.

After yesterdays news and chatter we have a couple of things to look forward to today. We have US & Canadian Trade Balance as well as Consumer Sentiment.

The daily Australian Dollar chart above shows a sell signal with a red diamond. We also have a divergence (not shown on chart above), reversal candle and the figure as resistance. These are all short positive potential positions. The flip side is we have XTL showing strength for continaution. A short would be appropriate only if we break the low of yesterdays candle to provide some form of momentum.

Personally, I would look for a reversal as opposed to a continaution based on what the technicals are showing but I would urge you to be very careful should you wish to take the same stance as this is very aggressive and you are going against the trend. If you are an agressive trader then as long as you are aware of your risk management and have well placed stops, the risk reward should be favourable.

Good luck and have a good weekend.