AUDUSD Long positioning for inflation numbers
Hello traders,
next week it's inflation releases week, all markets are on waiting mode until this data comes out. The world has started to look at bonds and bonds yields, and it's moving via inflation right now.
Commodities are an asset class that performs very well on inflationary periods(the last part of the economic cycle) and Australia is a very important commodities producer. Also Australia extracts a good part of the gold.
When inflations starts to pick up a common way of not loosing value is buying gold, so AUD has a double wammi this time.
Looking at waves, we are at the end of the retrace of the initial swing on the mid term wave, next wave is a momentum wave so better to catch it.
From the technical perspective we have formed a expansion of pivots wich gives us a tradable pitchfork. Also we have bullish divergence on the MACD. This level it's an important monthly level also so a rally could perfectly start from here.
From a risk perspective, we have a trade with a global RR of 2.5 so it's a trade I would take over and over.
Best of luck for you, and if you don't mind, press that thumbs up button over there and follow me for more analysis ;)
next week it's inflation releases week, all markets are on waiting mode until this data comes out. The world has started to look at bonds and bonds yields, and it's moving via inflation right now.
Commodities are an asset class that performs very well on inflationary periods(the last part of the economic cycle) and Australia is a very important commodities producer. Also Australia extracts a good part of the gold.
When inflations starts to pick up a common way of not loosing value is buying gold, so AUD has a double wammi this time.
Looking at waves, we are at the end of the retrace of the initial swing on the mid term wave, next wave is a momentum wave so better to catch it.
From the technical perspective we have formed a expansion of pivots wich gives us a tradable pitchfork. Also we have bullish divergence on the MACD. This level it's an important monthly level also so a rally could perfectly start from here.
From a risk perspective, we have a trade with a global RR of 2.5 so it's a trade I would take over and over.
Best of luck for you, and if you don't mind, press that thumbs up button over there and follow me for more analysis ;)
Trade closed manually:
Closed with profit: +200
Trading conditions have changed, NFP sends signals that FED might have to rise 4 or 5 times rates this year via wages, what means that the mid term swing will have to wait until this is priced in.
Trading conditions have changed, NFP sends signals that FED might have to rise 4 or 5 times rates this year via wages, what means that the mid term swing will have to wait until this is priced in.
Comment:
Closing point:
Trade active:
Target TP 1 reached