Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Aussie May Rise to 16-Month High on Ichimoku: Technical Analysis

Dec. 18 (Bloomberg) -- The Australian dollar may extend its gain this year against the U.S. currency toward a 16-month high, according to Gaitame.com Research Institute Ltd., which cited trading patterns.

The so-called Aussie may rise to $1.10 should it break above $1.06, a key resistance area, according to Takuya Kawabata, a researcher in Tokyo at Gaitame.com. The higher level was last reached in August 2011.

“The Australian dollar has been supported above the convergence line on the daily Ichimoku chart since late November and is looking to test higher,” said Gaitame’s Kawabata. The Aussie last rose above $1.06 on Aug. 9, forming a long upper shadow, he said, referring to a formation on the candle chart which displays a currency’s high, low, open and close for each day.

The Australian dollar was at $1.0539 as of 4:27 p.m. in Sydney from $1.0552 yesterday. It touched $1.0586 on Dec. 12, the highest since Sept. 14. The Aussie has gained 3.2 percent this year.

Ichimoku charts are used to predict a currency’s direction by analyzing the midpoints of historical highs and lows. Resistance refers to an area on the chart where analysts anticipate orders to sell an asset may be clustered, whereas support refers to an area where there may be a concentration of buy orders.

In technical analysis, investors and analysts study charts of trading patterns to forecast changes in a security, commodity, currency or index.

To contact the reporter on this story: Mariko Ishikawa in Tokyo at mishikawa9@bloomberg.net; Amina Mobley in Tokyo at amobley1@bloomberg.net.

To contact the editor responsible for this story: Rocky Swift at rswift5@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.