Tuesday, January 28, 2014

Australian ETF Breaks Support on Weekly Chart

Above is a weekly chart for the Australian ETF.  It had been consolidating in a triangle formation which lasted about 9 months.  But price action over the last several days has sent prices through the support of the lower trend line.

There are several reasons for this.  First, Australia's fortunes are directly tied to Chinas, as Australia exports a large amount of goods to China.  Second, Australia recently had a very negative employment print, showing a contraction of jobs rather than an expansion.  As a result, traders have sent the ETF lower.