Reversal up building for Australian dollar.
FXA (Australian Dollar Index) appears undervalued and due for a rise towards $75. A pair idea is AUDUSD buy.
Made a double bottom on the daily and shot up breaking the channel.
11/26/17 – Bias: Neutral. Outside bullish month and week up. Momentum inside hammer in August. Inside week 9/11/17. Tried to go higher in September, long upper shadow. Rev Strat Weekly Down Under 79.68. We will see what December brings. 4 consecutive bearish months. Has not made a lower low since 01/01/16 at 68.33.
11/26/17 – Outside bullish month and week up. Momentum inside hammer in August. Inside week 9/11/17. Tried to go higher in September, long upper shadow. Rev Strat Weekly Down Under 79.68. We will see what December brings. 4 consecutive bearish months. Has not made a lower low since 01/01/16 at 68.33.
The Australian central bank will likely lower interest rates again at its meeting today. The price of commodities and especially iron ore continues to plunge which leaves Australia with few choices to stimulate their economy. Lowering of interest rates will push down the Australian Dollar, and push up the US dollar.
This picture is worth a thousand words. Isn't it amazing when a currency is as volatile and as directional as the S&P500? I'm sure you have all seen this somewhere in the media, but thanks to Tradingview we can see just how tightly intertwined markets are. Sorry I don't provide much more insight into this pairing, but sometimes just plain old "statistical...
I think we are very much oversold at this point. The AUDUSD completed a measured move and formed a hammer candle. The doji in FXA at the 886 extension is not that strong, but I think we could see a nice retracement rally from here