Hi,Firstly, let me agree with many out there that the Resource...

Hi,

Firstly, let me agree with many out there that the Resource Tax proposed by the Rudd Govt is terrible, unintelligent strategy that will cause massive losses.

But this post is to correct the fact that the Aussie plunge recently is not due to the Resource Tax alone. In fact, the plunge can even be predicted purely from technical reasons.

The chart here
http://ozstock.blogspot.com/2010/05/technical-analysis-all-ords-triple-top.html

shows the triple top and from a technical standpoint - it is a bubble waiting to burst.

The Dow which dropped over 3.6% last night and many percentage point over the last few days is proof that the Aussie fall is not due to internal policies.

As the bubble waits to burst, recent events perfectly line up for all the right reasons to plunge:
- Greek debt crisis
- Euro debt crisis
- US uncertainty
- Aussie new Resource tax, etc.