Buy USD against commodity currencies (30/05/2013)

We have been observing a rise in US Dollar over the past month. However over the past 2 days the USD has appeared to be declining.  We take this decline as an opportunity to buy USD again, buying it against the two commodity currencies AUD and CAD

Read about the Trend/Wave/Extreme system here

USD/CAD (4-Hour) Buy

usdcad 30.05.13

Why Buy

  • A strong up-trend pattern
  • Trend(Long Term ) indicators are pointing up
  • Extreme Indicators are pointing oversold ,indicating the down move may be over
  • There is significant support at the 23.6% retracement  level

Note: Wait for 2 consecutive up candles prior to opening a buy trade

AUD/USD (4-Hour) Sell

AUDUSD 30.05.13

Why Sell

  • A strong down-trend pattern
  • Trend(Long Term ) indicators are pointing down
  • Extreme Indicators are pointing overbought ,indicating the up move may be over

Note:  Wait for 2 consecutive down candles prior to opening a sell trade

Make sure you place a stop loss slightly above 0.9700 ,as it is a key resistance level that may shoot AUD/USD higher.

Read about the Trend/Wave/Extreme system here.

The following is an analysis of the currency markets using the Trend/Wave/Extreme system . You can read about the system here. Please read our Risk Disclosure and Terms of Use  prior to making a trade using this information.