Big money has been moving out of Australia's currency for nearly a month now which has been the biggest drop in long contracts in this amount of time year-to-date. Australia's dollar index (AXY) is up 0.06% at 73.61 on the day after rebounding from the lows around 71.19.
Australia's economy has surprised investors with a beat in GDP and jobs numbers in the most recent reports. Having said that, institutions have been selling out of the buck for about a month now at an alarming rate which is rather concerning for the average investor. A little while back, I argued that Australia had a good chance for rebounding in this article. Price jumped over 2% in the next few days after that article, but the run was very short term. AUD/USD rose after a good GDP, but it couldn't maintain itself above the 0.74200s and put the pair in a state of consolidation. So until big money changes their sentiment toward the currency, I think it would be best to stay away from long plays and look to ride the momentum to the downside. Long term, the currency looks like a good long play, especially if they keep reporting good jobs numbers. But right now it's struggling with massive futures contract selling that will most likely continue to put pressure on the buck.
This pair fell back under the 0.74200s and is now riding the 50 DMA on the 1D chart. It looks like price will either consolidate between these two levels of support and resistance, or it will slowly bleed lower under support. In the past, this pair has historically made extended losses after a short rise in price according to this year's performance.
AC broke out of a long term channel and is now hovering at the top trend line on support. If momentum is strong enough, it could come up to test the previous high at 0.94185. Some bullish signs here on the 1D chart, but if it does end up moving bearish, we could see a test on support around the 50 DMA.
AUDCHF actually looks the most bullish out of these pairs right now. Price is bouncing up from the 50 DMA and testing support which is now a triple top on the 1D. If there is enough strength, price could come up to a falling trend line around .68495.
AI- Generated Trading Setups
AI-generated bullish/bearish bias setups on forex currencies, gold, & indices.
GDP numbers came in lower than expected in the US, marking the third straight drop in economic output. This is usually good news for the stock market indices and gold, however, bond yields continue to hold up above 5.1%. Here are some potential trade setups for both dollar and index longs depending on how the […]
Hi, I’m Nick! I am the founder of A1 Trading, market analyst, YouTuber, and creator of the EdgeFinder software tool. I caught a huge winner on USoil with the help of the EdgeFinder! In this article, I’ll walk you through my thought process behind the trade and how I found this crazy runner! Finding My […]
Last Friday's report showed a significant change in global market sentiment from smart money. What COT signaled has turned ultra-risk-off for traders who have been hoping for Fed fears to subside. This news could spark up worries about higher interest rates for the long term. EdgeFinder Analysis GBPUSD is now a -12 on the EdgeFinder […]
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here