Tuesday, December 08, 2009

Bearish Technicals For The Australian Dollar



G'day mates. Above is a daily chart of the Australian dollar and in the lower panel is the MACD indicator. The Australian dollar has clearly broken it's uptrend line which suggests that this bull market may either consolidate or reverse. The MACD indicator in the lower panel showed bearish divergence at the highs and has now crossed giving a sell signal.

When we look at the bigger picture in the weekly chart below, we see that the weekly MACD has also just crossed giving a very timely sell signal. Many charts of various markets are showing similar technical patterns. I believe this market is in a topping phase and that lower prices can be expected for the Aussie Dollar in the weeks to come.

5 comments:

Mr. Monopoly said...

I think this is a good call on the FXA daily chart. I would add that if follow-through selling develops, a head and shoulders top will be left behind with an objective of 86. On the FXA weekly chart, however, the MACD sell signal is only tentative until the week is complete.

mingworld said...

I need order books from amazon before it is too late. he..he..

RacerX said...

Onya Mate!

G'day!

Anonymous said...

Does anyone have any comments on USO or am I seeing some illusion ?

Frank said...

Kevin

Time for another post please :)

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