It is very hard to find a proper, solid trend on the market nowadays. Charts are full of sudden and unexpected changes in direction, boring sideways trends, and false breakouts. Let’s look at AUDUSD as an example, which initially went down due to the dovish RBA and later went higher thanks to the good retail sales data and the positive rumours about the agreement between the US and China – Australia’s biggest trading partner.
Technically, the movement is rather typical; a false bearish breakout of a crucial support, resulting in 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.
Next instrument is NZDCAD. Today’s rises here are correlated with the strength of the AUD but it is also the result of some 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.
Last up is bitcoin. After the rocket upswing that we witnessed yesterday, we have time to relax right now. The sentiment is still super positive and the target for this upswing is around the psychological barrier of 6,000 USD.