Tuesday, 12 April 2016

AUD/USD 7.x year cycle + LT trend line support + strong EUR/USD favour further rally (edited)

Monthly chart shows the AUD/USD is being lifted higher by a 7.x year cycle, and also is now above long term trend line support. Another factor favouring ongoing AUD/USD strength is general USD weakness. See charts I posted earlier for Gold and Silver, and more importantly EUR/USD. That said, for confidence in the bullish view, the AUD/USD must have monthly closes above the up trend line, so there is not much wriggle room from a crystal ball gazing point of view, or much risk from a trade idea point of view. Let's see.



Edit: Added second chart. Better illustrates why I consider the angle of the above up trend line to be important:


4 comments:

  1. Mate, that's just a stupid line you've drawn. No basis in fact.
    Don't invent rubbish. OK

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    1. Thanks for the chuckle. In case you are serious, I'll give a serious reply. I disagree. Here is why: https://twitter.com/AvidChartist/status/719855851708612609

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  2. Anonymous ... yes, you're right.

    I've checked the longer term graph... one needs at least THREE points to draw a reliable 'long term trend line support'. What has this bloke come up with ?

    Not to be trusted??

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    1. The old three points chestnut. I've had just as much success using two point touches as a trading tool, especially when there are parallel trend lines or channels, as there are in this case, as illustrated here: https://twitter.com/AvidChartist/status/719855851708612609

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