Hello, this pair is in ugly consolidation for long time showing a very low volatility. After a period of low volatility follows a period of STRONG volatility (do you remember the GBPUSD?) I expect this range to be broken very soon to the upside. Looking at W1 chart we see MULTIPLE rejections from a strong support. AO oscillator shows bullish divergence.
Here on D1 chart we have a clear range also (rectangle) and a big "triangle" that could be broken to the upside.
Remember that im not opening all ideas i post. For example im already long on AUDNZD so will not open this.
Make your analysis before opening a REAL trade.
Regards.
Comments
moneymaking
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To me this is just ugly consolidation, will take any patterns that emerge in it. But a breakout out of the consolidation will definitely be a strong one. which way the breakout will happen, only time will tell. All the BEST mate :)
valiang
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thank you for the nice work. the audusd and usdcad daily chart both signal strong commodities currency. While, to my understanding, CAD is relating to oil while AUD refers to China economy. The fundamental analysis seems to justify the cad rather than aud.
FullTimeTrader
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Hello, i agree with your fundamental information and considered it also. From my point of view oil is just doing a pullback and will continue falling for its last decline. On the other hand the dust settled with China news and the AUD will remain "stable" next weeks until next rate announcement (if no rate hike-the AUD could have some bullish reaction). My technicall reasons are shown on chart. Regards.
IvanLabrie
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Excellent, yes it's definitely something to monitor.
IanMFX
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Hi. thanks for the post. You don't open on both pairs at the same time because they are both AUD ? I'd like to know for my own experience growth :-)
FullTimeTrader
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You are right! Im already long on AUD. We should not overexpose our account, although it is very tempting we should be disciplined. Regards.
IanMFX
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Overexposure rule. Great tip. I would have thought too that you wouldn't open because the pairs corellating or not or something else. Cheers.