November 20 – Thoughts for the trading day ahead

It’s late Thursday evening (2315 hrs in fact) and I should be in bed as I have an early start tomorrow. Well everyday is an early start, I always wake up at about 0500.

I thought I’d do my report a bit early……put down in writing one of my thoughts for potential trades tomorrow or the next few days.

In particular my eyes are being constantly drawn to the Aussie.

Have a look at this daily chart…..

Aussie is showing some nice divergence on the daily chart and this week, on an intraday basis, I have been taking advantage of some lovely short term short trades.

Looking at a weekly chart you can see that the Aussie is on fire.

The Aussie’s climb since the beginning of this year has been relentless. Maybe it’s time for it to take a good long breather?

Perhaps the big figure of 0.9200 is going to be significant? It’s certainly been toying with that level today (Thursday). It said goodbye to 0.9300 and didn’t look back. As I type this note it is currently consolidating under 0.9200 and hugging one of my moving averages.

Of course AUDUSD is one of the commodity currencies and it’s value is very closely correlated with the price of gold, this will need to be taken into consideration.

Plenty to think about with regards this pair over the next few days. It certainly helps to have a look at the bigger picture before drilling down with your magnifying glass and trading those smaller timeframes.

Australia is due to ring that bell any moment now. Maybe I’ll stay up for another hour and see how this pans out?

Hhhmm……….