AUD/CAD: Approaching Cycle Low?

Published 05/27/2014, 02:51 AM
Updated 08/22/2024, 06:01 PM
AUD/CAD
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AUD/CAD

While we have not quite made it to Parity, we have approached the 'ideal' time for a cycle trough. Fingers crossed it turns out to be that way.

AUD/CAD Daily Chart

The middle vertical line is my preferred time for a cycle trough with the outer vertical bands there to allow breathing room for the timing (as cycles rarely are this perfect). We have not quite made it to parity, and I suspect we will make a visit to this level, even if only for an intraday spike. For me to become interested in tradig this cycle I would prefer to be patient and await for a basing pattern to form first and respect a levl of support.

AUD/CAD Daily Chart

The key levels remain the same as previously, however we are now approaching the end of the month so the pivot points will be recalculated next month. While my bias is to hold above parity we should also allow room for manoeuvre and noise around this level to be prepared for a dip below parity before the cycle low.

Of course there is also the chance of no cycle low appearing and for price to continue down. For this reason it is better to go for the aforementioned patient approach and wait for a basing/bullish reversal pattern to form around parity prior to trying to pick the swing.

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