This chart looks at the Australian Dollar where it highlights that the AU$ has spent the majority of the past 30-years inside of the blue shaded rising channel. The correlation between the AU$ and commodities has remained high over the past 30-years.
The AU$ created a “W” (Double Bottom) back in 2001 as a 13-year bear market was coming to an end as a new 10-year bull market was getting started. As the AU$ was moving moving much higher from 2001 to 2011, Gold, Silver, and Commodities went along for the ride.
The AU$ peaked in 2011 as it was hitting the top of this 30-year channel, where a major trend reversal took place. As the AU$ was peaking in 2011, Gold, Silver, miners, and Commodities did the same! The 7-year bear market in the AU$ has it now testing 30-year rising support at (3).
Joe Friday Just The Facts Ma’am- The AU$ is testing 30-year support at (3), with momentum oversold. If 30-year support holds and it breaks above falling resistance, it would send a bullish message to Gold, Silver, and Commodities not see in years!
The SPDR Gold Shares WATCH LIST CREATE GLD (GLD) was trading at $116.53 per share on Friday afternoon, down $0.10 (-0.09%). Year-to-date, GLD has declined -5.76%, versus a 2.19% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Kimble Charting Solutions.