piptank
Short

Short Aussie based on fundamentals $AUS $USD #forex

FX:AUDUSD   Australian Dollar/U.S. Dollar
Economies worldwide slowing down or missed their forecast. Why? There are different explanations. Today, I do a quick analysis of AUDUSD             and how I trade it.

As you may or may not know Australia (http://atlas.media.mit.edu/en/profile/country/aus/) and Brazil (http://atlas.media.mit.edu/en/profile/hs/2601/) together dominate the world's iron ore exports.
Iron ore is the basic source for iron and steel industries. It is essential for the production of steel.
Prices for Commodities like Iron Ore (http://www.indexmundi.com/commodities/?commodity=iron-ore&months=120) decreased dramatically in the last months. Also Commodity Metals Price Index decreased ( Copper             , Aluminum, Iron Ore, Tin, Nickel, Zinc, Lead, and Uranium Price Indices ) http://www.indexmundi.com/commodities/?commodity=metals-price-index&months=120
That's why IMHO e.g. AUDUSD             goes downwards and USDCAD             upwards. Canada's currency is dependent on their oil             production and the oil             price goes south.
Simon1
2 years ago
Agree with the general analysis. However, can you give more details on the proposed trade? SL, TP? As it is diagrammed on the chart I would say the risk/reward is to high for me (to much risk).
Also, on the fundamental side, can we be reasonably certain that commodities have not bottom out in price? Oil seems to be rebounding ...
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piptank Simon1
2 years ago
Hi Simon,
1. oil price is a political weapon for many countries you can never be sure it is bottom out or not that why oil trading is so difficult imho
2. I trade daily charts thats why my SL, TP are a bit bigger. Your risk and reward can be different, no question about it. I think a SL around 0.807 and TP 0.76 is great, too
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