UPDATE: 10:00 AM
The Dollar Index (DX) found support at the fan line we were watching. There’s plenty of resistance up ahead, but the channel it’s in indicates a potential meteoric rise. Note that this channel is at the exact same slope as every other from the past 4 years.
I expect a rise to the 87 area, sometime in the Dec 11 – Mar 12 time frame. This part is tricky, as previous rises have channel surfed. In the summer of 2008, DX accelerated when it shifted to a parallel channel to the left – not once, but twice. Eventually, it returned to the original channel to complete the move.
The Oct 09 – Jun 10 run did a bunny hop to the right, effectively slowing the pace of the rise. The Oct 10 – Jan 11 rise fizzled after a respectable 10% run. We’ll keep an eye on this one.
ORIGINAL POST: 2:05 AM
Updated chart on AUD/USD. Start with a pretty cool 20-year trend line…
Toss in some neat fan lines, channel and some Fib retracements…
Makes a pretty compelling case for a reversal.