We’ve been doing a lot of analysis on currencies who seem to have blown off too far versus the US dollar. And while Australia isn’t exactly running into the economic headwinds that are starting to blow through the economies in Europe, a chart of the Australian dollar speaks for it, perhaps screaming “Let me down!”
Will the market let the Aussie come down, or keep driving it higher? The fact that the body of the current week’s price bar encompasses the body of the previous three weekly price bars is discouraging for Australian dollar bulls. Might the Australian dollar need to come back down to 9400 or 9000 before taking another shot towards dollar parity? It looks that way.
Regards, Black Swan Capital
