Dangerous territory for AUD/USD
It's turning into an ugly day for the Australian dollar as risk trades slip on worries about US capital gains. With that, AUD/USD is in danger of falling below the six-day range and chewing into the big rally on April 13.
Just when we thought the head-and-shoulders pattern was invalidated, we end up with this mess.
The chart looks much like oil right now, which is also eating into the mid-April pop. It hasn't gotten ugly but the failure to challenge March levels is a worrisome lower-high.
Meanwhile, equities just keep falling on capital gains talk. The S&P 500 is down to a session low at -41 (on an old story, no less).
