My view of how AUDNZD could play out this year.
Even though highly correlated, if China's trade deal with America continues to soften and Chinese investors/ businesses pick up the pace again we'll see another influx of demand for Australian Commodities which are the major component in many Chinese Businesses.
The entry level is placed on the large wick. This is because MAJORITY of retail traders will be looking to place their stops here. The market is likely to go against their view and break the stops as 90% fail.
However, this technical level would require support from fundamentals in favor of AUD and COT positions leaning towards a buy for AUD futures.
Even though highly correlated, if China's trade deal with America continues to soften and Chinese investors/ businesses pick up the pace again we'll see another influx of demand for Australian Commodities which are the major component in many Chinese Businesses.
The entry level is placed on the large wick. This is because MAJORITY of retail traders will be looking to place their stops here. The market is likely to go against their view and break the stops as 90% fail.
However, this technical level would require support from fundamentals in favor of AUD and COT positions leaning towards a buy for AUD futures.
