Market News & Blog
Not expecting another Brexit style reaction. But it's possible.
For the past week, we have seen an appreciation in USDCAD which has traced up the C-D leg of a bearish Gartley pattern. Point D has now been met and according to chart theory, if the XABC points have all been met and the price moves towards the last level D and reaches that point, the pattern would indicate a reversal at this level and a possible retracement of 38.2 - 61.8% of the CD distance.
Kiwi Dollar rallies after CPI data; Oil recovers slightly after 4 pct decline
An interesting night of many moving parts which on balance still suggest an unwind of the reflation trade in markets.
Higher once the consolidation has ended.
0.7470 needs to hold.
Headed back below 20,000.
A very interesting night of disparate moves.
Since the middle of February, we have seen a drop in the price of AUDJPY which has followed the C-D line of a bullish crab pattern. The price has now reached point D which according to chart theory means the pattern has been completed and there should now be a reversal.
The AUDUSD rate has been declining since the middle of March towards point D but this has been interrupted by a short bounce and retracement which is creating a new possible harmonic pattern in the form of a bearish butterfly. If by the end of trading over the next couple of days, the price continues to drop to around the 0.75006 level we could see a possible reversal back up the new C-D line.