Australian Dollar AUDUSD set up for a 10% rally
Using a mechanical-only approach to analyzing the market can provide disciplined, unbiased and unemotional projections.
The AUDUSD has been building a base down here for the last 9 months where every single month has traded between 0.75 and 0.764. The trend-indicator "RgMov" hit a new 44-bar high in early 2016 which pointed to opportunities to buy 11-week oversold (using CCI(11)) and two signals have occurred so far. We are close to a 3rd signal.
The last 6 months have been a period of diminishing volatility as the monthly ranges have tightened. Notice the reduced ATR% line at the bottom. You can also see it in the size of the trading ranges on the monthly boxes.
The potential fundamental lift here is for the expectation of a rebound in commodities as investors look for a Gov't led infrastructure spend here in the US.
The "ENTRY LONG" for AUDUSD will take several steps, but I like my odds here even though the market hasn't started moving away from the "white box" "mode" on the chart. If we hold above the yellow line at .7476 the market is in very strong hands and if above .7640 there is a strong chance for acceleration up. If we see acceleration up, then you want to force yourself to jump on board and to be prepared to buy dips, as labeled in the green rally forecast to the "target zone" shown.
Stop loss 0.7400
Target 0.84-0.87
Time frame: 3-7 months
Tim 11/11/2016 .75519 last
The AUDUSD has been building a base down here for the last 9 months where every single month has traded between 0.75 and 0.764. The trend-indicator "RgMov" hit a new 44-bar high in early 2016 which pointed to opportunities to buy 11-week oversold (using CCI(11)) and two signals have occurred so far. We are close to a 3rd signal.
The last 6 months have been a period of diminishing volatility as the monthly ranges have tightened. Notice the reduced ATR% line at the bottom. You can also see it in the size of the trading ranges on the monthly boxes.
The potential fundamental lift here is for the expectation of a rebound in commodities as investors look for a Gov't led infrastructure spend here in the US.
The "ENTRY LONG" for AUDUSD will take several steps, but I like my odds here even though the market hasn't started moving away from the "white box" "mode" on the chart. If we hold above the yellow line at .7476 the market is in very strong hands and if above .7640 there is a strong chance for acceleration up. If we see acceleration up, then you want to force yourself to jump on board and to be prepared to buy dips, as labeled in the green rally forecast to the "target zone" shown.
Stop loss 0.7400
Target 0.84-0.87
Time frame: 3-7 months
Tim 11/11/2016 .75519 last
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