I haven’t seen the term “little Aussie battler” used for some time when referring to the Australian dollar, so let’s give it another name, the “little Aussie performer”, well at least for the time being.
Despite the majority of the nation, including the Reserve Bank, doing their utmost to will the Australian dollar down against the US dollar, it seems to defy all and sundry and continue showing strength just when we all think that it will deliver our collective wishes and fall. Having risen from a low of just below 87c to a recent high of 94.61c, where might it head from here?
Inverse head and shoulders at a strong support zone
Another article and another technical analysis pattern, this time the inverse head and shoulders pattern. This pattern is highlighted in the daily chart below, which spans a year, by the three ellipses. The green ellipse is the ‘head’ and the magenta ellipses are the two ‘shoulders’. The ‘neckline’ between the two ‘shoulders’ is shown by the black descending trend line. Note that the right ‘shoulder’ has a higher trough than the ‘left’ shoulder.