Analyzing the Drop in the Australian Dollar

The Aussie Dollar ($FXA) has been experiencing some weakness with momentum turning bearish. However there are a few bright spots for the currency down under. In March I wrote about the bullish COT data for the Canadian dollar, British Pound, and the Australian Dollar. All three put in gains in the following weeks. $FXA is now seeing similar action it the latest COT data while still experiencing headwinds from the increase in selling.

Here’s a piece:

Over the last month the Aussie dollar ($FXA) has been experiencing some weakness, dropping 5% in April. Let’s take a look at some of the earning warning signs that lead to the drop as well where the Aussie dollar could be heading.

While the drop has been quick, there are some signs we can look at that foreshadowed the move and help us examine future charts of not only the Aussie but other securities as well. In early April the Currency Shares Australian Dollar ETF ($FXA) attempted to break above resistance set over the previous twelve months at $105.

Source: Analyzing the Drop in the Australian Dollar (TraderPlanet)

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