Charts are full of sudden and unexpected changes of the direction, boring sideways trends and false breakouts. As an example, I do have AUDUSD, where first, the price went down due to the dovish RBA and most recently, went higher thanks to the good 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 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.
Next instrument is NZDCAD. Today’s rises here are correlated with the strength of the AUD but also it is 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.
The last one is the Bitcoin. After the rocket upswing that we witnessed yesterday, we have a time to relax right now. The sentiment is still super positive and the target for this upswing is around the psychological barrier of 6000 USD.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis