Attached is a daily chart of March Aussie Dollar (ADH3).
Friday's
price action showed a clear rejection of a trend failure. This
type of technical analysis flies in the face of tradition and
is a clear example of the algo headfake. At present level (103.95), we would adopt a half bullish bias and change that to full
on a settle above 104.41. We would return to neutral on any
trade below 103.46 on downside or a trade of 105.35 on upside.
The fundamental argument would be continued Fed stimulus
coupled with an improving picture in China.
Jim Iuorio