Loading ...AUD/USD weekly resistance
AUD/USD is up against weekly resistance. Perhaps the resistance will be broken through and if so there is lots of room to develop on the long side. Being a support/resistance price action trader I will be observant of either way the price moves. In the shorter intraday time frame (H4) it appears a retest of the area around 0.805-0.801 may take place. Therefore I will consider to place a few buy limits in that area next week if it holds. If the price continues to move in the current direction, without a retrace, I will instead consider a buy stop crossing over the upper weekly line, using last weeks close as stop loss level.
Nice clean charts Pixie.
Easy to read and see support resistance
Good trading
Thank’s Fully! I like to keep it simple.
Thank you! The month charts of Copper and AU are pretty similar… except that AU has massive catching up to do over the next few months to meet the percentage gains of copper this year.
The FX rooms that I participate in were very long AU during the last few weeks and there was some profit taking yesterday when that September high was broken. However, I would like to point out that the COT data for 2 weeks in a row has had Large Speculator positions that were LESS than expectations.
barchart.com (all reported): https://www.barchart.com/futures/commitment-of-traders/technical-charts/A6*0
investing.com (interactive): https://www.investing.com/economic-calendar/cftc-aud-speculative-positions-1615
Large Specs went net long ONLY 3 weeks ago… and you can see from the past where previous tops are located with respect to Large Spec positioning. The Large Specs basically got caught with their pants down as it has risen far faster in the past and funds have either not been able or not been willing to unwind shorts. This is by no means done yet so I just wanted to give your confidence a boost for this trade.
AUDUSD, NZDUSD, and GBPUSD are my primary focus for longs over the coming months and while the dollar shows major breakdowns. It’s a commodity boom all around with metals, lumber, grains… all good things for Australia and New Zealand.
Of course, these are all just my opinions, so I have to have that disclaimer 🙂
Cheers!
Nice charts pixie, ive got a couple charts I could add to the picture.
I follow the AUD cycles very closely – as you point out it is the proxy for commodities.
The AUD hosted an ICL (weekly cycle low) 08 Dec
If the AUD hosted a mild DCL (daily cycle low) on 10 Jan (a short cycle) then it is likely it will continue to rise until around 08 Feb
RIO.AX is the most sensitive diversified miner to the AUD and it appears to have hosted a DCL on 24 Jan and should now advance rapidly given that it is in only it’s second daily cycle out of the ICL
Thank you all for commenting! Your perspectives and added insights are appreciated! Now is indeed an interesting time for the AUD/USD.