The Aussie has lost upward momentum against $ US this week. On the chart this is indicated by:
- A trend peak under the upper Bollinger Band following the strong momentum peak above it and
- The slow stochastic indicator now trending down from the overbought zone.
From here, a break below the 20 day moving average would confirm a trend change. This would set up for a potential test of the uptrend line and lower Bollinger Band (currently below .75)
About Ric Spooner
Ric Spooner is Chief Market Analyst at CMC Markets in Sydney. He has over 30 years experience in derivates markets, and was previously a Managing Director at Sydney Futures Exchange Clearing, General Manager at JBWere Futures and Manager at Elders Futures.