The chart of the day has got to be the Australian dollar as it continues to plummet to new 2013 lows and new multi-month lows out of a bearish wedge pattern. The catalyst behind it is poor economic conditions, specifically retail sales over in Australia and the likelihood of future interest rate drops as everyone is in this currency war of who can devalue their currency the fastest.
You may know, the Australian dollar topped in early 2012 and just continues its decline which is just adding to why fewer and fewer stocks are able to participate in this move up.
That’s why you don’t see Freeport McMoRan (NYSE:FCX), the United States Steel (NYSE:X), Cliffs Natural Resources (NYSE:CLF), Joy Global (NYSE:JOY) and all of those types of stocks able to participate in any type of rally because of the bigger picture: The Australian dollar is not only at new 2013 lows, but new multi-month lows and possibly maybe later this week into next week challenging the lows of September 2012.
InvestorPlace advisor John Lansing tracks the charts all day and offers expert technical analysis in his day trading, options and trading services: Power Trading at the Open, Parabolic Options and Trending123. For more information on which service is for you click here.