Australian dollar tumbles to the lowest since August 19. Carves out H&S top

The Australian dollar chart has caught my attention today as it falls 76 pips, or 1.1%. It’s the underperformer today as the US dollar strengthens broadly and risk trades are beaten up.

A week ago, it looked like it could be breaking out as it touched the highest since January but the market is having second thoughts on the soft-landing thesis, along with more worries about China.

That’s prompted a rapid shift and now we have what looks like a head-and-shoulders top. The measured target of the move would be 0.6550.

This article was written by Adam Button at www.forexlive.com.