Canadian Bulls And Australian Bears

While the attention of the world and all money holders is on USD, the AUDCAD asset wrapped up in its own drama. Generally, this asset is not in any party's interest anymore. So, it is high time for drifting and making money on it.

Basic arguments:

The difference between the Australian interest rate (1,0%) and the Canadian one (1,75%) is quite significant: 0,75%. However, on the background of fading interest of investors to the mentioned asset, CAD is getting higher against AUD, which means that the AUDCAD follows a downward trend.

Technical arguments:

There is a DOWNWARD trend on this asset, which is accompanied by the periods of falling and market corrections.

Analysis of big traders' positions:

Picture 1. A price of AUDCAD and the indicator of "big traders" for the period of 15.05.2019 - 15.07.2019.

As we can see in picture 1, positions of big traders for this instrument significantly reduced, and the market began it's decreasing very gradually with small shifts around the fair price.

Forecast for the current week:

All market indicators show that the current correction will end soon, and the DOWNWARD trend will continue quickly. So, it means that we can forecast a DOWNWARD trend for the current week.

We recommend to use the following indicators for better control of positions:

• RSI
• Moving Average

Moving Average reflects a trend, and RSI helps to indicate when a market is in an "oversold" or "overbought" condition.

For a moderate level of risk, we recommend you to keep the ratio of 2 "down" trades and 1 "up".