The Australian & Canadian dollar, the GBP traded against the USD

No, this is not an economics piece on the Star Wars Empire; I have in mind former British Empire currencies. Those are the Ozzie, the Loonie and the Pound Sterling, aka Australian Dollar, Canadian Dollar and British Pound, all as the traded against the USD.

$Aus/$US

First, the Ozzie which has been in rather a straight line rise since mid-March. Thursday and Friday saw sharp selling of the Ozzie, which has been rather over-bought. If you are a position trader and are still long the Ozzie, I trust you have exit orders in place; if not, I suggest you put some in.

The upcoming week should tell us a lot about where the Ozzie is headed. $1.10 is a very high price. It does not, to me, make economic sense. But we are not here to trade economics, but to trade currencies. The choices the market can make are, in descending order of probability: down for days, weeks or months; sideways for weeks; return to rising. I will return to this chart next weekend by which time one might hope for some clarity.

USD/CAD

The Loonie chart needs to be inverted to be like the Ozzie. By that I mean that the Ozzie is the price of one $A in $US while the Loonie is the price of one $US in $C. The net effect has been the same: the dollar has been getting creamed.

This chart looks to me like the USD is more nearly ready for an upward move than is the case for the Ozzie. Again, we should know more this time next week.

Finally, that preserve of the Old Lady of Threadneedle Street, the British Pound. The Pound has been beset by its own problems, including a change of governments in England, bringing a sea-change in fiscal policy. While the Pound has gained 10% or so against the $US, it has not been nearly so pretty nor so quick as the Ozzie has managed. FWIW, the Ozzie picked up about 12% or so over the time the Pound picked up 10%.

GBP/$US

I don't have any trading thoughts about the Pound. Just now, I'm not interested in trading it. In the near past, it hasn't been creating situations that I feel I know how to trade. That brings me to my favorite piece of good advice: When In Doubt, Stay Out!