Wednesday, May 19, 2010

Australian Dollar - Technical Breakdown


The Australian Dollar was down sharply today losing over 2% of its value today alone. Above is a weekly chart of the the ETF for the Aussie Dollar (FXA) which shows a double or maybe even a triple top. The Australian Dollar confirmed this pattern today by breaking below its support line.

You'll notice in 2008 FXA had trouble breaking through the 92.50 level from which point the currency literally collapsed! It appears FXA is once again having trouble with this same level and is now heading south. Notice how volume is beginning to pick up on the down moves which is another indication that this ETF may be heading lower in the weeks to come.


1 comment:

Anonymous said...

Kevin,

What is your price objective for FXA?

Thanks,
Traderwannabe

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