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
Full Disclosure: Nothing on this site should ever be considered to be advice, research or an invitation to buy or sell any securities, please see my Terms & Conditions page for a full disclaimer.blog comments powered by Disqus
J.C. Parets is the Founder & President of Eagle Bay Capital, LLC. He is a 10-year veteran and Market Technician who actively manages money incorporating Technical Analysis and Behavioral Finance into his practice. JC’s work has been featured regularly on CNBC, Fox Business, Bloomberg, Business News Network, Wall Street Journal and Yahoo Finance among many other financial media outlets. More...
- Bloomberg Appearance: Gold, Bonds & Apple
- Is There Any Reason To Buy Gold?
- Let’s Define The Key Levels In Twitter
- Do We Buy Semi’s For A Trade?
- Was That A Failed Breakout in Russell2000?
- When Do We Buy McDonalds?
- How High Can Chipotle Go?
- Is It Time To Buy Apple? Or Is It A Sell?
- Where Are U.S. Treasury Bonds Heading From Here?
- A Top/Down Look at Shares of Google
Archive by Year