About me CurrencyClouds™ teaches potential and current traders about analyzing and trading currency markets via the Clouds. The Cloud; translated from the Japanese word "Kumo" is a indicator derived from the not so ancient Ichimoku Kinko Hyo (Ichimoku.) Translat
As the USDCAD broke out of it's 1.05-1.10 ceiling back from 2013 we've been in a bullish market for this pair. Upon this break the market begin it's 2 year bull run from January 2014 breakout to it's all time high January 2016 of 1.4690
The USDCAD then begin to correct May of 2016 by first pulling back to it's 50% Fibonnaci retracement of 1.3030 from the 1.0620...
This could be a short-term #headandshoulders pattern before moving higher. Price swung down from $9948.12 to $5777.00 before swinging back 61.8% of the move to $8482.84.
I believe we have orders clustered around $7035.82 to $6445.94 zone.
Aussie Dollar is reaching has flipped to the down side (Wave 5 start) off the 61.8% of the last down swing (Wave 3) over the long term (a few weeks) we are expecting to see $0.72 down to $0.7170.
Next week we will experience US Bank Holiday - Memorial Day (May 29th) and on June 2nd (Non-Farm Pay Roll). Expectation is is low until the following week.
Weekly - Week of 5/1 candle closed as Indecisive bear doji. Rejecting off weekly 20 & 50 ema. Continuation signs from double top swing lower from week of 3/20.
Daily - Daily candle from 5/5 closed as bullish low test off of key support of 0.7400. Upside resistance at 0.7500 (trendline, key resistance, 20ema)
Based on my analysis of price action price is set to...
GBP has rallied but is stalling on 4hr at the 38.2 fib line, not much confluence other than reversal candle and the FIB line. Looking price to maybe move back to daily support of 1.2301 but time will tell
Will take the short on the close of the candle
In the next few days this maybe a possible resistance point for the AUDJPY. No definite answer due to the news heavy week, but watching levels around this point of 79.60 - 79.80 give or take a few pips.
Added to positions+
Factors. Doji test of 50ma. 3 days supported price off 50 & 200ma. Target at Key daily support of 1.1350 as ideal target. Looking for clean, low risk opportunity to break accumulation