It is very hard to find a proper, solid trend nowadays on the market. Charts are full of sudden and unexpected changes in the direction, boring sideways trends and false breakouts. As an example, the AUD/USD price first went down due to the dovish RBA and then moved higher thanks to the strong retail sales data and the positive rumors about the agreement between the US and China – Australia’s biggest trading partner.
Technically, the movement is rather typical: false bearish breakout of a crucial support, brings us a strong upswing. The price is now testing the dynamic mid-term resistance. Breakout of that red line will bring us a nice buy signal.
The next instrument is NZD/CAD. Today’s rises are correlated with the strength of the AUD, but it is also a take profit action from the recent significant drop. Rising prices create a great selling opportunity. The sell signal is still pretty strong and what you are getting now are the higher prices, which can significantly improve the risk to reward ratio of the short position.
After Bitcoin rocket upswing yesterday, we have time to relax right. The sentiment is still positive and the target for this upswing is around the psychological barrier of 6000 USD.