Downside Target For The Australian Dollar

The Australian Dollar has literally fallen out of bed over the past 3 weeks which makes many people wonder how much lower can this currency go. Well if you look at the above weekly chart of FXA  (Australian Dollar) you will notice a very obvious double top which was confirmed this past week.

If you take the height of the double top pattern and subtract it from 85 which was the low, you will arrive at a downside target of 77.00 for FXA. That is where I expect this currency to go in the weeks to come.

Forex - British Pound

I'd like to take a long term view of the British Pound to help put things into perspective. In the above chart you will notice that the rally which began in January of this year has abruptly stopped dead in its tracks at the 170.00 level. What is so significant about the 170 level? Well if you look back a few years you will notice that a major low was made in Novemeber 2005. This low is now playing as resistance and is why the British pound has stopped at this level.

My personal opinion is that the British Pound will rally due to the 8 year cycle which indicates that this currency should be in an uptrend for the next several years. Having said that, I will look for buy signals to position myself in the direction of the major trend.

Australian Dollar - New Highs For The Year

The Australian Dollar broke out of its recent consolidation establishing a new high for the year. The Australian Dollar is one of the strongest currencies over the past few months and is clearly in a strong uptrend.

Forex - Bear Flag In The Euro

The Euro is clearly in a downtrend and has been consolidating forming a bear flag. The Swiss is already trading below last month's low and it looks like the Euro will do the same. If the currencies begin another leg down, I'll post my downside projections for the Euro in the days to come.

Forex - Canadian Dollar Makes Multi Year Lows

Exactly one year ago the Canadian dollar was making multi year highs but as you can see in the above chart this currency is now making multi year lows! Over the last four weeks the Canadian dollar has been selling off sharply literally falling out of bed. It looks like a bounce is due which may offer another shorting opportunity if things set up.