The triangle breakout has been largely anticipated over the past few weeks and has played out as expected. After having several attempts to break above the buyers finally gave up.
It came as no surprise how quickly the Feds changed their tune when Donald Trump became the President elect. Now with a very hawkish stance on monetary policy the Feds sited they must hike rates as soon as possible. This added more steam to the already hot US Dollar driving prices to new 12 year highs.
One can always argue, do the charts predict Fundamentals or are the charts just a pictorial representation of the value where price is driven ?
With the Dollar index now soaring, will the Dollary Doo 😉 continue its fall or will it have a correction?
The Aussie has now broken though all major support levels in just over a week
This is the first time we have seen price fall below the 200SMA since May this year.
Price has now cut through long term monthly trend support once again. From where price had formed the monthly channel in March 2014 and rejected we had a massive sell off of 2500 pips. A continuation within the weekly trend channel is likely.
Is the Aussie destined once again for the .50’s ?
There was talk on this last year when the Aussie failed to get back into the .80 levels. Some economists predicted the Aussie to fall to .59 by 2017. With the American economy posed to heat up and the Aussie still on a slow down along with China it seems likely the Aussie will continue its decline.