Trading opportunities on currency pair: due to the falling price of iron ore and weak stats from Australia and China, the Australian dollar is really under pressure. On the weekly a pinbar (reverse candle) has formed. A fall lower than 1.1130 leads me to believe there’ll be a weakening of the Aussie to the 1.0835-1.0916 zone.
My idea from 18th May didn’t come off. The AUD/NZD rate broke from the trend and 1.0916 resistance, but on 7th June the line was broken. By renewing a maximum of 1.1428, the weekly candle closed with a pinbar. It’s a reverse candle, but that doesn’t always come off.
The Australian dollar is suffering from the fall in the price of iron ore, whilst its New Zealand counterpart is suffering due to a fall in the price of milk. Taking the positive weekly indicators into account, I reckon that a bear divergence is forming on on the CCI and AC indicators. If this divergence comes to fruition, a fall lower than 1.1130 leads me to believe there’ll be a weakening of the Aussie to the 1.0835-1.0916 zone. Any fall further than that is questionable.
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