Australian Dollar S T R E T C H E D
Interesting price action today - as the US Dollar ( DXY ) was rising marginally so was the Aussie Dollar - while the Euro , CAD, British Pound all moved lower.
After a month long accumulation - The Aussie broke out rising more than a cent - on the last Friday of August, and continued to move after hours.
Today's price appears to be a stop run, before the market turns and go the other direction.
This is a situation where you want to watch their hips not their eyes. We are outside recent value - this trade idea is that we return to value clean up the weak price structure. The second target is to the other side of value and clean more of this price structure.
The US Dollar is skipping at the bottom of a channel - but its holding. Fund managers are adding to their net long positions - all pointing to lower Aussie Dollar prices.
BLOOMBERG:
8-28-2020
EQUITY FUND MANAGERS RAISE S&P 500 CME NET LONG POSITION BY 9,213 CONTRACTS TO 144,877 IN WEEK TO AUG 25 FOR USD
Speculators are short USD.
After a month long accumulation - The Aussie broke out rising more than a cent - on the last Friday of August, and continued to move after hours.
Today's price appears to be a stop run, before the market turns and go the other direction.
This is a situation where you want to watch their hips not their eyes. We are outside recent value - this trade idea is that we return to value clean up the weak price structure. The second target is to the other side of value and clean more of this price structure.
The US Dollar is skipping at the bottom of a channel - but its holding. Fund managers are adding to their net long positions - all pointing to lower Aussie Dollar prices.
BLOOMBERG:
8-28-2020
EQUITY FUND MANAGERS RAISE S&P 500 CME NET LONG POSITION BY 9,213 CONTRACTS TO 144,877 IN WEEK TO AUG 25 FOR USD
Speculators are short USD.
Trade closed: target reached:
Took longer than I thought - the idea did work.