This pair is fun for me. It pairs two commodities against each other, and weighs gold vs. oil. This is a common metric in the futures world to measure the value of the two commodities – against each other. Because of this, the pair tends to trend nicely, as the two commodities are so widely traded.
Risk 0.75%
Trades can be taken all 24 hours of the session.
Long Trade 1:
Buying AUD/CAD above the 1.0110 level
Stop loss at 1.0050
Take half profit at 1.0150, move stop loss to break even
Let rest of position ride.
AUD/CAD Analysis:
The pair has been trending quite nicely as of late, as the gold markets have been much more stable and bullish than oil. (In general.) The oil markets are facing serious resistance, so it makes a lot of sense that the gold currency – AUD – would continue to outperform the oil currency – the CAD. What you don’t see on this one hour chart is that the area just below has a lot of support on the daily charts as well.
The Crude Oil Inventories announcement comes out during the session, and this could cause noise, but in general – the trend should continue to show strength.
