Chart 2: Australian Dollar (FXA) And Australian Dollar Diffusion Index (DI)
- The intermediate-term trend is DOWN (chart 1).
- Invisible hand, however, continues to ACCUMULATE weakness. Australian dollar's DI reading has risen to 86%. This bullish setup suggests a concentrated market primed for a rally.
- Technical analysis suggests that the secular trend is down until the 2011 trading channel is broken to the upside (chart 2). Any upside reaction within trading channel; therefore, must be considered a counter trend rally.
Australian Dollar's Correlation with Gold:
Chart 3: Gold London P.M Fixed (Gold) And Australian Dollar Diffusion Index (DI)
Strong bullish setups in the Australian dollar have a history of marking tradable bottoms in gold. The path of least resistance is down, so don't anticipate a turn without technical confirmation.
As a special thanks to the loyal Insights supporters, additional, market-driven money flow, trend, and intermarket analysis will be provided to Insight donors in 2013. This analysis will be revealed by an Insights key.
Paypal, a leading provider of secure online money transfers, will handle donations. Thank you for your contribution.