…and a little more relevant given that it is the Asian time zone and at least this ones moves a little in Asia, and LOT in London and NY. Have a look at the attached daily AUD/CAD chart and the first thing to notice is that since November we have 0.7700-0.8700 that has dominated.
Although we are smack bang in the middle of this recent range, i believe there are constructive signals indicating a move back to 0.8700 and potentially onward and upward to the 0.9000 region. Why do i think this? We appear to have commenced a nice upward sloping channel within the dominant channel and in the same direction too! Add to this that all the moving averages are doing as they should and the 50 is above the 100 which also adds weight to the case for a move higher. Expect to see resistance at the previous high around 0.8700 which is also where the 200 day MA comes in.
There is a risk that we could come back to 0.8000 before starting our assault on the higher levels but i think it is worth having a nibble close to current levels and seeing how we go. I would suggest buying AUD/CAD at 0.8210 with a stop below 0.8130 with a target of 0.8600 to take something off the table.
