The recovery of WTI last week met resistance in the 54.60 area. The price formed a gap down on the mounting fears about the coronavirus.
A trade idea for AUD/CAD
BUY 0.9365; TP 0.9408; SL 0.9350
It looks like AUD/CAD formed an “Inverted Head and Shoulders” pattern on D1. The candlestick on W1 is a bullish “hammer”. To place a trade, we plotted Fibonacci retracements from April-May decline. An advance above 0.9360 will open the way up to 0.94. Notice that the currency pair will meet significant resistance in the 0.9440 area (daily MAs).
Sell trades will become relevant if the price gets back below 0.9300.
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The volatility in USD/MXN has jumped. The pair is correcting up within the downtrend, which has been in place since September.
It looks like the American stock market woke for the true depth of dangers presented by the Coronavirus. Why now?
AUD is on a downswing against the USD. It reached the Spring-2009 lows. Will it continue the same direction?
NZD seems to be in an equal fight against the JPY. What stands behind that?