AUD/USD: ABCD Pattern on the Daily (That’s some spooky stuff)
There's been a really strong bullish run for the AUD/USD pair that began on 18/01/2016. Between you and I, I was convinced that the Dollarydoo (AUD) was weak as piss and was headed for 0.65 and below. However, like most analysts at the time, I was wrong… There are many explanations for the rise in the value of AUD/USD, but in reality like always, it was good old commodity prices that lead the charge.
In fact, Iron Ore prices tanked in December 2015, roughly the same time when AUD/USD bottomed. Coincidence??? I think not.
Looking at the Daily chart, I think we are looking at the making of an ABCD pattern. Moving from the lows of 0.6827 (15/01/16) to the highs of 0.7835 (21/04/16), the market has almost retraced and perfectly closed right on the 0.618 level from the highs of 21/04/16.
What’s even stranger is that IF this ABCD pattern is real, then the closing price where the pattern completes is almost perfectly at 0.80 (That’s some spooky stuff).
For now, I’m not entering any trades with this pair… I posted earlier that I think we may be seeing a trend change for $DXY, therefore, I’m not confident at all to be entering into any trades with USD related pairs until such time that I receive the confirmation I’m looking for.
Read more here: AUD/USD: Trade Idea 22 May 2016
About me: Based in Melbourne Australia, I have been trading Forex for around three years. My real name is Andrew, I’m Australian born and trade Forex part-time.
Follow me: andrewfx2020.com/
Twitter: twitter.com/Andrewfx2020
In fact, Iron Ore prices tanked in December 2015, roughly the same time when AUD/USD bottomed. Coincidence??? I think not.
Looking at the Daily chart, I think we are looking at the making of an ABCD pattern. Moving from the lows of 0.6827 (15/01/16) to the highs of 0.7835 (21/04/16), the market has almost retraced and perfectly closed right on the 0.618 level from the highs of 21/04/16.
What’s even stranger is that IF this ABCD pattern is real, then the closing price where the pattern completes is almost perfectly at 0.80 (That’s some spooky stuff).
For now, I’m not entering any trades with this pair… I posted earlier that I think we may be seeing a trend change for $DXY, therefore, I’m not confident at all to be entering into any trades with USD related pairs until such time that I receive the confirmation I’m looking for.
Read more here: AUD/USD: Trade Idea 22 May 2016
About me: Based in Melbourne Australia, I have been trading Forex for around three years. My real name is Andrew, I’m Australian born and trade Forex part-time.
Follow me: andrewfx2020.com/
Twitter: twitter.com/Andrewfx2020
