After reaching historic highs, the aussie reached and bounced from a trend line (to the pip) observed on the weekly/monthly charts. Just draw a line connecting the highs of 2004/2008/2011. On the other hand, I also ask you to draw a descending TL extending from the lows of 2004/2008 and projecting on. This should be enough to give you the idea of a broadening triangle that most-likely will turn into a diamond in the future.
There is an RSI divergence on the weekly chart that only confirms a MACD divergence that has a must-reach target of 0.9536. However, we should see this pair trading much lower in the following years.
On the daily/weekly chart, PA broke an ascending channel formation and now found support at a very interesting trend line that can be drawn from the low of 2007, the low of dec. 2010 , the low of the current year + yesterdays low. A next approach to this trend line will most-likely mean the kiss of death and the aussie will resume its path down.
So I guess it's very likely that we shall see an Australian Dollar, much, much lower in the following years.
Once again, time will tell.
The daily chart showing the rising channel as well as the trendline that extends from the low of 2007. Price stopped its temporary descent right @ this trend line.
The weekly chart: a bounce towards much lower levels is expected. This broadening formation might turn into a huge diamond.
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