The Trend Is the Aussie Dollar Bulls’ Friend

Jim Wyckoff Barchart Tue Jun 10, 9:15AM CDT
A pile of Australian dollar bills by RomanR via Shutterstock

September Australian dollar futures (A6U25) present a buying opportunity on more price strength.

See on the daily bar chart for the September Australian dollar futures that prices are trending higher and last week hit an eight-month high. The bulls have the firm overall near-term technical advantage as “the trend is their friend.” Price trend is the most powerful technical indicator.

Fundamentally, Australia’s economy is heavily reliant on the export of raw commodities, which have seen more global demand recently. Australia and the U.S. are also on relatively good trading terms, while the U.S. and China remain at loggerheads over trade. That’s Australian dollar bullish and U.S. dollar bearish.

A move in the September Aussie dollar futures prices above chart resistance at last week’s high of .6550 would become a buying opportunity. The upside price objective would be .6750, or above. Technical support, for which to place a protective sell stop just below, is located at .6450.

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IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.

Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%): 

Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you. 


On the date of publication, Jim Wyckoff did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.