Correlation and Chart Pattern cues hint at a continuing trend.
Last week we took a trade in the AUD with positive results and closed the trade manually with profit.
This week-end's analysis aims to look at the recent performance and chart patterns and give reason as to why a bullish trend may be a theme next week.
Firstly, the reason we are bullish next week is not because we were bullish last week. Subtle cues may give us a hint as to where other instruments are heading and thus I make inference to XAG USD and the DXY to give a formulated idea for the AUD.
On the weekly chart for the DXY I have identified a doji candlestick, which may possibly indicate a trend reversal in the Bearish direction (for DXY). A bearish DXY will mean the AUD quite possibly will be stronger than the US Dollar.
On the weekly chart for XAG USD we have seen the past two weeks in the green, heading up. Where the close for Friday is at the moment still visibly in the trough of the dip, meaning there may possibly be some significant upside. A (roughly) positively correlated XAG USD to the AUD means that it's possible that if the XAG USD is positive then the AUD is too.
In conclusion, by looking at XAG USD and the DXY it infers that the AUD may be heading for another week of bullish gains. An assumption that could entirely be wrong as the candlestick pattern for the weekly AUD chart displays a rather indecisive pattern.
This week-end's analysis aims to look at the recent performance and chart patterns and give reason as to why a bullish trend may be a theme next week.
Firstly, the reason we are bullish next week is not because we were bullish last week. Subtle cues may give us a hint as to where other instruments are heading and thus I make inference to XAG USD and the DXY to give a formulated idea for the AUD.
On the weekly chart for the DXY I have identified a doji candlestick, which may possibly indicate a trend reversal in the Bearish direction (for DXY). A bearish DXY will mean the AUD quite possibly will be stronger than the US Dollar.
On the weekly chart for XAG USD we have seen the past two weeks in the green, heading up. Where the close for Friday is at the moment still visibly in the trough of the dip, meaning there may possibly be some significant upside. A (roughly) positively correlated XAG USD to the AUD means that it's possible that if the XAG USD is positive then the AUD is too.
In conclusion, by looking at XAG USD and the DXY it infers that the AUD may be heading for another week of bullish gains. An assumption that could entirely be wrong as the candlestick pattern for the weekly AUD chart displays a rather indecisive pattern.
Trade active:
Open long trade
Comment:
We are currently higher than when we started the trade LONG. It will be interesting to watch the AUD over the next fortnight to see if an uptrend is forming and hoping that any unexpected corrections do not occur. NOTE: XAG USD is up and DXY is down at present.
Order cancelled
Comment:
TRADE INVALID