WHAT IS THE AUSSIE WAITING FOR?

My favourite pair has always been the Aussie Dollar. I think it's the most easiest pair to trade, alongside the USDJPY. But trying to trade the Aussie recently would have given you a case of acute migraine (if you didn't already have one). Looking at the Charts of the Aussie below, the Aussie at the the bottom of what could slowly be a Head and Shoulders formation. But it doesn't look like it wants to break down (unlike the Euro and Cable, which fiddled with the bottom of their downtrend channel before breaking down, in all their glory).











So what's up, mate? Everyone knows about the Aussie's close correlation to Gold, so maybe we should look at the chart for Gold to give us some clues on the impending breakout of the Aussie. It is obvious from the chart of the GLD (the Gold ETF) that Gold is slowly consolidating in what is termed a rising wedge pattern. Gold is waiting to break up to the upside (or downside) once it completes the wedge pattern. Only when Gold breaks out should we see the Aussie finally do something, fulfilling its promise as an easy pair to trade. Intermarket analysis on other correlated assets gives us clues to help in our Forex trades.




Chief Shook