By Chris Becker
Even amid broad USD weakness last night, as gold, euro and other major currencies rallied, nothing could save the Aussie dollar from its almost perfect technical short setup as it fell over 1 cent and broke through critical support to a new four year low:
I opined yesterday (I can’t give any stronger hint than that!) that the four hour chart above was forming a classic head and shoulders bearish reversal pattern with the neckline at the 85.40 level. This medium term setup reflects the longer term picture for Aussie that we’ve been talking about at MB for a long time and with that level breached post London trade last night (i.e by the real market positioners), the next stop is the 80 cent level.