Traders, AUDUSD has been falling for few weeks without a proper retracement to the upside. Last month gave us hints of more bearish action however there can be a possible upwards relief rally. Hit the like button and subscribe if you enjoyed this analysis. Comment below and let me know what you think of this analysis and that is yours? Have a great trading week!
Great analysis!! Just a quick question on why AUSUSD and USDCAD would be inversely correlated?
vikinsa
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@ashqi, Thanks. Not just those only. Nearly all currency pairs are correlated due to one factor or another. However we looks for the degree of correlation/inverse correlation for our analysis. For example check out my analysis of USDCHF and EURUSD. They are usually inversely correlated too. Both AUDUSD and USDCAD are commodity forex pairs meaning that they both are related to the price of crude oil which affects both pairs. That is the main reason. Another reason is that in the pair AUDUSD "AUD" comes first where as in USDCAD "USD" comes first. So if there is any movement in USD these 2 pairs move in different directions. This is true for pairs like EURUSD and USDCHF too. Hope this answers your question.