Courtesy of Chris Kimble
Is the Aussie Dollar about to jump higher and signal that Commodities and interest rates are about to do the same? Possible!
This chart looks at the Aussie Dollar on a monthly basis over the past 16-years.
The AU$ created a bottoming pattern over several months in late 2008/early 2009 at (1). While creating the bottom, a couple of monthly bullish reversal patterns formed. What did commodities and yields do following the bottoming process in the AU$? Both were creating bottoms as well!
The 9-year decline in the AU$ has it testing triple support at (2), where it created one of the largest bullish reversal patterns in decades.
If the AU$ is creating a long-term bottoming pattern, odds increase that commodities and yields could be forming a long-term bottom as well.
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