We’ll be looking at the long term trend of everyone’s favorite pair AUD/CAD.
Our bias is a sell to possibly the 0.685 price level. We’ll be factoring both technical and fundamental analysis of both currencies to predict possible future movements.
First, we’d like to look at the monetary policies within both of these economies. Australia has been easing it interest rate from 2016. They are aiming for rates to go as low as -3.25%. A negative interest rate policy meant to boost economic development in the country. Canada on the other hand has been tightening with the BOC seeming very hawkish over the past few years. This is a very good setup for a carry trade which would mean the Aussie pushing down further.
Second, we’ll have a technical view for all the traders who are beasts at identifying patterns. We’ll keep it real simple On the 1 MONTH chart the market has been trading below the 20 EMA and 50 and 100 SMA. It goes the same for the 1 WEEK chart but with an Elliott wave theory that is currently on its fifth and final wave.
What are your thoughts on this pair?
Did you say bearish?
Overall this presumes that USD will be Bullish
and I know nothing about oil which will also influence the price.
Hey midwest,
We are talking about AUD/CAD trend at the moment
We will cover USD/CAD next week.
Da, may bad, what was I thinking.
Yes bearish
However watching the Oil influence a CAD pairs is new to me.
We can only get better everyday. Keep studying
Ok what or why do you say Long on AUDCAD?
I see nada that would indicate a long position.
We don’t have a long (buy) bias on AUD/CAD we have a sell bias, if you read the full article we have clearly explained the market sentiment.
I apologize again, suppose I was simply to busy trading the USD pairs today.
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Today 28/1 should give a clear indication of the direction the pair will go. I am very bearish at the moment 07:15, I have already taken 40 pips off this pair, and will take some more.
This is all supported by MACD signal leaving the histogram, downward sloping 50, 100 and 200 moving averages, and not forgetting the Absolute Strength setting up to cross.
BUT, given that pair are in a rising triangle, nearly confirmed break to the downside on last close, there is still a chance the pair will go up.
Happy trading all, my the pips be with you.
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