Sunday, February 12, 2012

What Gives?

Two different currency charts will be touching support this week. Which one holds might give us a look at where the market headed. The AUD/USD is usually in step with SPY. In the next day or two it will probably hit the bottom of it's ascending channel. Will it hold?

Meanwhile, the USD/CHF has, for the most part, gone the opposite of SPY. It is now hitting it's short term support and also multi-year support. Back in July 2010 it came down to support, snugged the line for a while and then dropped. Will the same happen this time?

Let's keep a close eye on these two charts and watch which one holds. It should give us a clue on where we are headed.

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