The Australian dollar has been much in the news over the last couple of weeks, with the alleged role that it has played in the demise of Holden and other Australian manufacturing companies. Also, RBA Governor Glenn Stevens has used commentary in attempts to talk down the ex “little Aussie battler”.
Let’s consult a 10-year weekly chart of the Australian dollar against the US dollar. There are two major support-resistance zones that are shown with bold blue rectangles. These two support-resistance zones align with two major 50% retracement levels, which are shown by the top and bottom magenta ellipses.