
Given the stated desire of
the Australian monetary authorities, in the form of the governor of the Reserve
Bank of Australia (RBA), to attempt to talk down the value of the Aussie
dollar, given the continuing falls in the price of hard commodities, such as
Iron Ore, upon which Australia has been so dependent for its prosperity and
now, given the fact that the US economy has provided the rational, in the most
recent Non Farm Payrolls report, by which Quantitative Easing (QE) will be
finally phased out, there is no reason to believe that the Aussie dollar is in
anything other than a bear mood.
And this is borne out by Technical Analysis of the Aussie against the US dollar (AUDUSD pair). The four hour chart shows that we have had a lower high, and a lower low is now a certainty (it is only a question of at what price level it will be established). As we know, lower lows and lower highs define a downtrend.
And this is borne out by Technical Analysis of the Aussie against the US dollar (AUDUSD pair). The four hour chart shows that we have had a lower high, and a lower low is now a certainty (it is only a question of at what price level it will be established). As we know, lower lows and lower highs define a downtrend.
We are currently short the
AUDUSD pair.
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