New Useful Strategy for AUD/CAD

Not much time ago we wrote about the Canadian dollar and made a forecast regarding its immediate prospects. We said that the expansion of the dollar did not stop. The Canadian, using his strong positions continued to grow in value, rapidly moving the chart down.

We have already relied on data regarding the positions of major traders in the foreign exchange market and found out that so far the traders have not revised the prospects for the Canadian dollar in relation to the distant Australian fellow.

Over the past 3 weeks, the schedule continued to fall. The traders pushed the Canadian dollar positions up.

As can be seen in Picture 1, the price for the last month has continued to move downward without changing the emerging trend.

Picture 1. AUD/CAD price chart for the period from 01/01/2018 to 08/10/2018.

As can be seen in Picture 1, the trend has been going on for quite a long time. It makes us think about a soon reversal for a correction. According to the schedule, we see that the angle of inclination of the price is significant. This fact means that the position of the traders continued to grow in volume and reached a new maximum. For this purpose, we consider the current values ​​of the index of major traders and find out how strongly the traders continue to believe in the Canadian dollar.

Picture 2. Graph AUD/CAD price and graph of major traders for the period from 17/09/2018 to 08/10/2018.

As it can be seen on Picture 2, the index value reached a maximum of 1 which means that the position of the major traders is now at a local maximum. It indicates a strong belief in the Canadian currency. However, it can also be a prerequisite for a quick correction if the traders will run out of fuel. However, recent trends suggest that the position continues to grow and gain new highs, indicating that the trend will continue.

The forecast in the near future to open positions "down."