I wanted to update you on my thoughts around the AUD/USD. If you have been following by blog posts on the Aussie currency you know I have been shorting for a while now and posted that I believe the top was going to be around .9500 which was put in almost to the pip. 

With Gold losing more ground today than I have seen it lose in a single day in a long time along with a drop in oil prices I beleive we are finally seeing the commodities correction that I have spoke about in the past. Since the Aussie is closely corolated to commodities we should begin to see a nice move down on the AUD/USD in the medium term. 

Allready we have broken below the former lows of .9127 which could be seen as a break out of a 1, 2, 3, pattern. Additionally the NZD/USD as well as the USD/CAD will also find a run as they are also closely corrolated to Gold, Oil, etc.

This entry was posted on Wednesday, March 19th, 2008 at 6:56 pm and is filed under Bank Flow. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.