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Is this Australian Dollar Rally the Real Deal? Probably Not

David Rodriguez

- Australian Dollar trades at critical resistance, fails to break higher

- Strong disconnect from Gold prices warns Aussie$ rallies may be at risk

- Sharp shift in retail FX sentiment warns we’re at make-or-break levels

The Australian Dollar trades at critical trendline and moving average resistance versus the US Dollar. But key FX correlations suggest it will run out of steam.

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Forex Correlations SummaryView forex correlations to the S&P 500, S&P Volatility Index (VIX), Crude Oil Futures prices, US Treasury Yields, and Spot Gold prices.

forex-trading-Australian-Dollar-forecast-to-stall-at-critical-resistance_body_Picture_5.png, Is this Australian Dollar Rally the Real Deal? Probably Not

Data source: Bloomberg. Chart source: R SEE GUIDE ON READING THE ABOVE CHART

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com David specializes in automated trading strategies. Find out more about our automated sentiment-based strategies on DailyFX PLUS.

Contact and follow David via Twitter: https://twitter.com/DRodriguezFX

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