This Aussie Dollar is really interesting here. There are reasons to be bullish, fine. But the consequences of these levels not being the bottom are….wait for it….wait for it…Goldilicious.
Here’s what I mean. Two weeks ago, I was explaining to you guys how there was a nice bullish divergence developing in gold miners. But we weren’t getting any confirmation from price. And it was taking forever. So I pointed out how the consequences of gold miners not finding a bottom there with that bullish divergence in place would be devastating. And sure enough, they rolled over and the crash has continued.
We’re seeing some similar developments in Aussie – $AUDUSD. We have a really nice bullish divergence in the daily chart. And going back further looking at the weekly chart, we can see that we’re near critical support levels from 2011 lows as well as 2009/2010 highs. Here’s the daily chart showing this divergence without any confirmation yet:
We still haven’t gotten that bounce. Prices haven’t confirmed this divergence. And like gold miners a couple of weeks ago, it’s taking forever. So if this isn’t the bottom, I would say that Aussie is in serious serious trouble. And I don’t mean a slight pull back either. I mean gold type moves coming in this thing if it can’t find a bottom right here. Take a look at how much downside aussie has on the weekly chart. It’s no joke.
Tags: $AUDUSD $FXA