As go commodities, so goes the Aussie?dollar. The recent pick up and bullish?performance?in commodities as?a?whole in?Q1 of 14′ have?helped lift the Australian?currency?6.9% in the?last?three months?to?the?highest?trade in 4 1/2 months. In the?last?six days June futures have consolidated at the .9200 level with daily?stochastics?starting to roll over. I am?anticipating?commodities taking a breather and?hence?think it viable to see a correction in this cross. I am not calling for a bear market but rather a?tradeable move lower. Key to this is the risk to reward metric as well. I think one can work into bearish trade with?stops?above the recent highs.?
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Use the Fibonacci levels in the chart?below?to guide you with?prices?objectives. A settlement below the?white upsloping trend line would confirm an interim top is in place. The darker blue line (50 day MA) coming in near .8940 is my ultimate objective. This futures contract size is $100,00?which?means every 1 tic?makes or looses $10 per contract. June?options?could also be used which have just over 2 months time… expiring?in 64 days.?
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