Bearish View an easy to understand method and explanation
Right now I got a very itchy trigger finger want to take out my next position if price heads to that top blue zone will be taking another short position
We have a IVR ( red and black line ) going rising above 50 ( Bearish ) and a few fundamental factors
Mainly with the US dollar sell off it is making every other currency strong AUD VS the EUR because EUR is a very important economy in terms of geo politics. That aside the triangulation formula we are looking at is Weak USD = strong EUR, strong AUD 1st tip of triangle 2nd tip is that, Strong EUR= weak USD, strong AUD and Strong Aud= Weak USD, strong EUR
So we have just set up 3 different pair trades based off 1 triangulation with 2 clear directional trades next we have to do a lil dirty work to understand the factors to set up a Weak AUD , Strong EUR and its inverse things that we can better understand by technical and fundamentals using price 1st. Here I accomplish that by understanding price in terms of 1,000 point swings and 250 points segments every 250 pip seg. I seek to understand the given fundamental environment to get an explanation of price.
Currently, we are looking at good fundamental out look for the EUR with the way they are approaching handling of the pandemic with US on the decline everyone is positive on the next most important consumer backed currency. While AUD is experiencing its 1st recession is over 25 years though they are handling the virus well it is the uncertainty of its housing market and other dominoes in how they handle their 1st downturn in a generation.
Though Aud is still in a very good position by being a commodity backed currency the world in recovery will require raw goods and currently their biggest customer is also the fastest growing country. With a corner on the market with industrial metals and ore as the prices of these things increase so will its currency profile. While the falling dollar means that commodities priced in dollars are higher priced which means if you want to pay USD for AUD exports it will cost more in terms of goods cost and currency exchange cost.
We have a IVR ( red and black line ) going rising above 50 ( Bearish ) and a few fundamental factors
Mainly with the US dollar sell off it is making every other currency strong AUD VS the EUR because EUR is a very important economy in terms of geo politics. That aside the triangulation formula we are looking at is Weak USD = strong EUR, strong AUD 1st tip of triangle 2nd tip is that, Strong EUR= weak USD, strong AUD and Strong Aud= Weak USD, strong EUR
So we have just set up 3 different pair trades based off 1 triangulation with 2 clear directional trades next we have to do a lil dirty work to understand the factors to set up a Weak AUD , Strong EUR and its inverse things that we can better understand by technical and fundamentals using price 1st. Here I accomplish that by understanding price in terms of 1,000 point swings and 250 points segments every 250 pip seg. I seek to understand the given fundamental environment to get an explanation of price.
Currently, we are looking at good fundamental out look for the EUR with the way they are approaching handling of the pandemic with US on the decline everyone is positive on the next most important consumer backed currency. While AUD is experiencing its 1st recession is over 25 years though they are handling the virus well it is the uncertainty of its housing market and other dominoes in how they handle their 1st downturn in a generation.
Though Aud is still in a very good position by being a commodity backed currency the world in recovery will require raw goods and currently their biggest customer is also the fastest growing country. With a corner on the market with industrial metals and ore as the prices of these things increase so will its currency profile. While the falling dollar means that commodities priced in dollars are higher priced which means if you want to pay USD for AUD exports it will cost more in terms of goods cost and currency exchange cost.