Duration: 10 Months , 03 Weeks
Number of Trades Total | This Month: ] 300 | 23
Winning Trades Total | This Month: 240 | 16
Pip Gain/Loss Total | This Month: ] +11,209.7 | 1,680.9
16 May 2013 Daily review by myfxpedia.com:
The Equities market again set a new high last night while the USD is also pulling back from its intraday high yesterday due to Industrial Production declined in April but noted that its Home Builder survey is rosy beating market expectation. Later today we will have US building Permit numbers and Unemployment Claims and if the number stack up we will probably see the USD resume the uptrend.
It seems that the strength in the Aussie has now give way to the bear with many leading economics and Funds are seeing the weakening AUD ahead. The view is that Australia economy is in real trouble with the accumulative debt, terrible manufacturing numbers, commodities prices getting soft and so the curtail in mining investments, add on to that we are now seeing slow in China.
In saying that do not expect a straight drop on the AUD, what we are looking for the bounce back up and any retrace higher is an opportunity to short. In the mean time we see that the AUD has been oversold and will not be surprise to see a short squeeze back up higher before a meaning downtrend resume on AUDUSD.
On the other hand we also see the NZD is still overrated and Australia is the biggest trading partner of New Zealand so higher NZD will do New Zealand no favour in term of trade with Australia. Last week the New Zealand did not hesitate to directly intervene with currency market when AUDNZD went below 1.2000 and we are of the opinion that it’s likely they will do it again in a very near furture.
Impact News today:
08:30am (NY) USD – Building Permits; Core CPI; Unemployment Claims
10:00am (NY) USD Philly Fed Manufacturing Index
Technical Analysis:
AUDNZD – we are starting to accumulate on this pair due to the nature of its repeated pattern. Also, on a monthly chart it’s in the process of creating a bullish divergence while on Weekly it’s in the process of creating a Continuous Bullish Divergence plus extreme oversold and it’s now entering our Terminal Zone, currently prices has reaches our downside projection for this leg down.
On Daily, we are likely see a monster Bullish Divergence going to be created. We will accumulate on this pair with maximum stop stands at 1.1620. Our positions held currently is less than 1% Drawn Down so no panic. Weekly and Daily Chart below.
[url="https://myfxpedia.com/forum/myfxpedia/data/photo/myfxpedia-daily-review-16may2013-AUDNZD-weekly.png"]

[url="https://myfxpedia.com/forum/myfxpedia/data/photo/myfxpedia-daily-review-16may2013-AUDNZD-daily.png"]

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