Today we see how commodity realted related currencies (AUD,NZD,CAD) seem to be up trending in the markets today.
With some strong uptrends in the USD and down trends in GBP that have allready been present in the past days it's a bit dangerous to look at these currencies as anything can happend now.
After scanning various pairs with the Trend/Wave/Extreme indicator we can see that currencies whose countries export commodities (Gold,Silver,Oil) such as Canada, New Zealand and Australia appear to be strong.
- AUD( AUDUSD uptrend overbought,EURAUD down oversold)
- NZD (NZDUSD uptrend overbought, EURNZD down oversold)
- CAD( USDCAD downtrend oversold, EURCAD down reaching oversold)
As most of the above Currncies have reached extremes uptrends it may be dangerous to buy them but at the same time not wise to go against them. Nevertheless I examine the potential regarding a trade between AUD against NZD.
AUDNZD (H4) Potential Sell
This is a trade that has great potential if a breakout to the downside occures and a reversal occures.
- The Trend Bar is marginally Green Up filled which is an indication that the UpTrend may be ending
- Wave and Extreme Bars are Down Red filled which is an indication of Strong Down Side Momentum
- The chart pattern shows an Up Trend which has been trapped within a range (1.1040-1.092) and unable to reach higher.
Note*: If you are planning on selling this pair wait for a strong breach of the 1.092 support level. Once broken there are several pips that can be made.
Read about the Trend/Wave/Extreme system here