The very profitable FX-Signal Indicator just printed a Buy-Signal on the Australian Dollar that has not been seen since 2001.
This signal is important for banks and investors who are investing for the the really long therm value of holding the Australian Dollar for the next 7 years.
For Short therm day-trading, this is also a very important signal, because it tells us that AUDUSD has to be traded bullish instead of bearish, specially right now where we have a very strong accumulation-period as the volume indicates.
Based on other technical observations, there is a huge head & shoulders formation that just ended on the same chart – which is another strong indication that the Australian Dollar will go up in value.
The only one who can really destroy this scenario is the Australian and American policies. It is Australia interest as an export country to keep the price of the AUD low to compete with India and China – So it is also in India and Chinas interest to keep the AUD high to make sure they stay out of the competition.
There is a war going on in the currency-markets every day, and we trade them at Stakepool. We will be following the Australian Dollar closely from month to month.
Market Jun 21, 2016