The Australian Dollar: Get Ready for a BIG Move

[fxxx2005]

The Australian Dollar: Get Ready for a BIG Move


The Australian Dollar: Get Ready for a BIG Move
5/18/2005 3:46:59 PM

</SPAN>

One currency has been in the news more than usual lately: the Australian dollar (AUD). It’s been falling persistently for some time now, and on Monday (May 16), “The Australian dollar dropped to its lowest in four months” (Bloomberg).

The sell-off is widely blamed on the recent slide in commodity prices, especially copper. "Copper prices fell the most in seven months last week, leading a broad decline in metals that Australia exports,” says Bloomberg. “The Australian dollar is affected by the price of metals because raw materials account for almost 60 percent of the nation's overseas shipments, which make up about 20 percent of the economy."

This reasoning sounds perfectly logical…until you check the chronology of the recent price action in Copper and the AUD. In New York, Copper topped on April 12. But this year's top in AUDUSD came on March 8, more than a month earlier. If the Aussie dollar follows the Copper markets -- as the headlines would have you believe -- how could it have topped a month before Copper?

There is more. The Aussie dollar fell particularly hard between March 19 and April 6 – while at the same time, Copper was happily climbing to its April 12 top. In other words, for several weeks the two markets showed an inverse relationship. On other occasions – most of May, for example – they moved in lockstep. Bottom line: there is no relationship between the price moves in Copper and the AUD. So how can anyone possibly claim otherwise?

But claim they do. Many fundamental analysts seem to encounter the same pitfall: They don't pay enough attention to price action itself. If only they compared Copper and the AUD on a chart, these so-called "inter-market relationships" (or lack thereof) would become very clear.

Of course, if fundamental analysts used charts more often, what would technical analysts like us do? So we’re not complaining. Instead, we relentlessly study market psychology displayed in the charts and report our findings to you.

The sell-off in the Australian dollar didn’t come as a surprise to us. Since early last week, our Currency Specialty Service has been telling readers to get ready for the start of “something big” in the AUD. But what we’ve seen so far is nothing.

We believe that the coming price action in the Australian dollar should be of the “black hole variety.” And if you hurry, you may just get in on it in time for the really big ride. You’ll find the details right now in our Currency Specialty Service – just look below to get started.


0.7594



http://www.elliottwave.com/features/...d=1691&time=pm

[صراف]

ولا فهمنا ولا كلمة هل التحرك فوق ولا تحت ؟

[uae_forex]

شو السالفة &Ccedil; T &Egrave; U