Trade Setups / Chart in Focus:
The AUD/USD responded to QE3 with a huge 150 pips pop but as been today has been unable to hold those gains giving back 70 pips so far.
The Fed’s move was massive and will devalue the greenback causing commodity prices to skyrocket. Most likely gold will see new high’s and this directly benefits the Aussie dollar. Expect to see further stimulus out of China too in the coming months. Long term it looks as if aud/usd is closer to 1.1200 then parity.
Let’s take a look at the charts.
Weekly chart declining..
4 hour chart turning..