Here is the Aussie Dollar Chart. Does it remind you of the Yen chart and the Canadian Dollar Chart at inflection points just a few months earlier? See my Wiley E. Coyote Blog if you missed them.
The Australian Dollar just lost both the 40 WMA and the 10 WMA. Can this support line hold it? We don't want this chart to fall. I am concerned that all the currencies are starting to fall like dominoes. Does this chart have the strength to hold?
Maybe this blue line will be support and we bounce from here. The red line is definitely horizontal support. Just a little pullback? Or another Yen waterfall? Or a significant bounce right here. Lets hope so.
Usually when the green shaded area pinches down its like the calm before the storm. We get an abrupt move that is swift and large. Direction unknown. When it starts moving, pay attention. This looks like its breaking down to me. Currently support is still holding.
In the ChartWatchers newsletter this weekend I'll compile a complete blog about all the currencies. Watch for that in your inbox.
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Good Trading,
Greg Schnell CMT.
