Australian Dollar Breakout Could Send Gold Toward $3,000
Chris Kimble | Jul 15, 2021 07:09AM ET
The Australian dollar is trading near a very important resistance level.
And the implications are massive… especially for gold and the precious metals complex.
Today’s chart looks at a long-term “monthly” chart of the Australian Dollar. As you can see, the Aussie has been in a declining channel since peaking in 2011. Note Gold also peaked at that time (precious metals tend to perform well with a strong Aussie).
Looking at current trading, we can see that the Aussie is bumping up against massive resistance around the .80 level. This resistance is defined by a long-term horizontal support/resistance line, as well as the falling down-trend line.
A breakout higher would have big-time implications for the gold… likely propelling it toward the $3,000 level. But wait for a clean breakout to signal a green light. Stay tuned!
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