Aussie, Kiwi Sinking Fast.

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There is so much going on in the financial world, that it is difficult to keep up with the developments, never mind digesting them and applying to trading (profitably). So many stories are coming for Europe alone, many conflicting, that one just sorting them out is almost a full time job. Financial analysts are earning their keeps now, at least those few who manage to make sense of it. Little surprise that everybody screams “caution” – nobody really wants to commit to anything now, at least publically. Thankfully, there are still charts, and they do not care about opinions.

Not that long ago I discussed a possible Head and Shoulder reversal in the AUD-USD, which suggested more downside for this pair. The NZD-USD showed almost identical picture, with the same set up. The AUD-USD offered a selling opportunity on the break of the 1.02 resistance. My entry was at 1.0196, with first objective at the parity, which was met on Thursday. I closed half of the trade and will hold the balance for a little longer, targeting 0.9800-0.9700. Because the Aussie and Kiwi are sinking fast, this trade could come to a conclusion relatively fast. Even allowing for a potential rebound, it should not take more than a week. For Friday, I will focus on short-term trading at the start of the London session, looking for smaller gains.

Mike K.