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: