Alley-Oop: Aussie Up!

I could tell you this article is an alley-oop, that buying the Australian dollar right now is a slam dunk.

But then I’d be sounding much too certain for my own good (and yours.) So consider this a regular chart setup with lots of rationales suggesting the Aussie could shoot higher by nearly 4% from current levels.

First, here is a chart from Jack. (It should give you a good idea of the key levels he’s monnitoring for members of his Black Swan Forex trading service. If you’re interested in a FREE WEEK of his trade alerts and analysis, click here.)

Jack’s looking for a c-wave move at least reaching high enough to test the AUD/USD 0.9317 level … and then a potential extension that could reach the next swing high at 0.9664

I, obviously, agree the Aussie’s direction will be higher if it can hold trendline resistance (inverted head-and-shoulders neckline) it’s testing today. What’s intriguing is that so many indicators — specifically the targets generated by those indicators — are converging at pretty much the same spot on a chart: AUD/USD @ 0.9525

Many targets converging at AUD/USD 0.9525

Here are those three targets:

1) A c-wave extension measuring right on 161.8% Fibonacci retracement

2) A 38.2% Fibonacci retracement of April to August downtrend

3) An inverted head-and-shoulders projection of about 3.75%

If you’re already trading Forex, you can use AUD/USD to play this idea. If not, you could use shares or call options on the CurrencyShares Australian dollar Trust (FXA).

Good luck.