IvanLabrie

AUDCAD: Fundamental trend gives us great opportunities

IvanLabrie Premium Updated   
FX:AUDCAD   Australian Dollar/Canadian Dollar
The underlying trend is that oil production won't slow down anytime soon and that the oil price will continue to plunge, whereas copper and gold fall at a much slower rate in general.
Both currency pairs correlations and Central Banks agendas make them lose value periodically vs the dollar, but that isn't a problem for these setups I outline here.
In fact, the mild correlation between the two makes it possible to have an independent trend, born out of these peculiar characteristics of the instruments that we pit against each other, which are basically audusd and cadusd .

Rgmov implies that the trend is bullish for the AUD, and I think it makes a lot of sense. We can observe how large and sharp the bullish swings are, specially when under the yearly and quarterly averages.
The setups are detailed on chart, feel free to experiment with the concept.

Trading it in pairs provides us with more flexibility and no fear of getting stopped, so that will be my favored approach when trading it from now on, but I'd also take the oversold CCI trades in the AUDCAD pair since they are quite sharp and one directional when they occur.
Comment:
Clicking play a few times shows you how the relationship between pairs works.

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