Australian Dollar Technical Outlook.I am zooming out to the daily in order to highlight the long term bearish Bearish Words used to describe investor attitude. A bearish investor believes that a particular asset or the market as a whole will decline in value. bearish implications from the 5 wave drop and subsequent 3 wave rally (since July 2008). The corrective rally from the October 2008 low ended right at the former 4th wave, which is typical of corrections. The pattern since the October low can also be categorized cat·e·go·rize tr.v. cat·e·go·rized, cat·e·go·riz·ing, cat·e·go·riz·es To put into a category or categories; classify. cat as a head and shoulders continuation. Coming under the February 2 low at .6245 would mark a break of the neckline neckline The line that connects the two lowest points on the intermediate declines of a head-and-shoulders chart pattern. In an inverted head-and-shoulders formation, the neckline connects the two intermediate tops. and focus would then shift to the October low of .60. A word of warning to bears though, staying above .6245 keeps the larger range intact and there is risk of a rally that exceeds .6857 prior to resumption of the downtrend downtrend A series of price declines in a security or the general market. Many analysts feel that investors should avoid securities in a downtrend until the pattern is broken. Compare uptrend. . 2009 Al Bawaba (Albawaba.com) Provided by Syndigate.info an Albawaba.com company |
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