Is the Aussie Dollar about to jump higher and signal that Commodities and interest rates are about to do the same? Possible!
This chart looks at the Aussie Dollar on a monthly basis over the past 16-years.
The AU$ created a bottoming pattern over several months in late 2008/early 2009 at (1). While creating the bottom, a couple of monthly bullish reversal patterns formed. What did commodities and yields do following the bottoming process in the AU$? Both were creating bottoms as well!
The 9-year decline in the AU$ has it testing triple support at (2), where it created one of the largest bullish reversal patterns in decades.
If the AU$ is creating a long-term bottoming pattern, odds increase that commodities and yields could be forming a long-term bottom as well.