XAU and AUD are positively correlated which means when price of GOLD goes up AUD goes up too. Hence, AUDCAD dropped heavily in recent time and therefore price is at the 'discounted level' where big buys are expected within the next week. It is crucial to enter with good risk management. Next week is likely to be volatile.
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Trade active
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Comment
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261+ PIPS running in positive, expecting price to continue the uptrend.
don't you think this current bearish trend will prevail? Thanks!
Setupsfx_
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@DemoDiaryFX_Trading we take economic data into the consideration as well while analysing the charts. Technical alone is a bit risky. Don’t you agree?
DemoDiaryFX_Trading
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@Setupsfx_, understand you, thanks that's a very big question, however :) as a short answer, I believe that's OK. Sometimes when the trends are established, it's even somehow possible to "predict" economic data based on technical analysis, though it may sound like a paradox... what I think is weakness of fundamentals: 1. Insider trading, to which retail doesn't have access. 2. Truly, fundamental start to influence the market mainly BEFORE economical data released. What we have on release is usually manipulation + continuation of technical trends 3. Too many factors to consider and sometimes subjectivity to their interpretation
With that said, if used correctly, fundamentals are also very powerful to help in understanding overall bias of the market, I definetely agree with that. Just saying that's it's possible to trade without them, however only in a clear environment. For example on charts like UJ this year it was possible to trade solely on technicals, because price action was very clearly bullish etc.
jpeacockfx
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Looks like something big could be setting up here! It will be interesting to see how this one plays out, thanks for sharing!
Setupsfx_
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@JPI_Traders_Group thanks a lott
jpeacockfx
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@Setupsfx_, No problem at all, you deserve the support!