Watching Aussie Dollar as a Leader
- Posted by JC Parets
- on December 21st, 2012
With equity markets around the world vulnerable for a correction, the Australian Dollar is probably a good place to start looking for leadership. Over the last couple of years, breakdowns in the Aussie have led to weakness in the S&P500. Today we’re looking at a chart of the $AUDUSD breaking support from an uptrend line of closing prices from the June lows (Click Chart to Embiggen)
Chris Kimble of Kimble Charting Solutions does a nice job here of showing how the Aussie Dollar has been a solid leading indicator for US Equities. Although it appears to be breaking down, Kimble says, “One day does not make a trend, so keep a close eye on where the AU$ heads from here, because it could help you with portfolio construction in a big way!”
Make sure to follow Chris Kimble on Stocktwits @KimbleCharting
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J.C. Parets is the Founder & President of Eagle Bay Capital, LLC. He earned the Chartered Market Technician designation (CMT) in 2008 and now actively manages money incorporating Technical Analysis and Behavioral Finance into his practice More
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