AUD finally broke out of it's down trend and showed a reversal @ 0.56ish. The following week prices showed an increase in volume and A LOT of volatility - most thinking this to be a dead cat bounce. Net volume on both the daily and weekly shows a steady increase in volume right before the next fib channel is tested. The heavy resistance (historical) sits at 0.70, if we can close the daily above this, prices could easily push to 0.75-0.80 over the next few months.
Why this pair?
- The Australian Gov are opening the country up post-covid, given the minuscule case numbers and community transmissions = gdp and trade going up
- The past 2 months, AU monetary policy has had hit after hit, trade restrictions, low growth, increasing unemployment, yet the dollar has seen steady and healthy growth. Somethings happening here.
Likely scenario - a test at 0.70, rejection back to the 0.69/0.68 zone and a breakout to the 0.70+ zones.
Why this pair?
- The Australian Gov are opening the country up post-covid, given the minuscule case numbers and community transmissions = gdp and trade going up
- The past 2 months, AU monetary policy has had hit after hit, trade restrictions, low growth, increasing unemployment, yet the dollar has seen steady and healthy growth. Somethings happening here.
Likely scenario - a test at 0.70, rejection back to the 0.69/0.68 zone and a breakout to the 0.70+ zones.
Comment:
Right on track as predicted. Looks like we will be testing the 0.70 level. If we break that, then we should be on track to hit some crazy levels. Stay tuned
Comment:
Still on track, looks like we did play things out as expected. The next 2 weeks will be make or break for this pattern, still optimistic we will see some crazy numbers!
Trade active:
Still have this trade active. I'm sure you're all pretty happy right now if you havent sold as of yet ;) Still on track to reach the target.