This week’s trade theme: the Canadian dollar as the second position in a currency pair.
This trade concept completes ongoing research on the AUD/USD and cross pairs against the predominant principle that exchange rates predict exchange rate entries and targets perfectly.
AUD/NZD as an exchange rate appears to fail inside the AUD cross pair lineup but AUD/NZD’s purpose to AUD and to NZD is its ability as a forecast currency not only to AUD pairs but to CAD pairs in the second position, particularly AUD/CAD, NZD/CAD and GBP/CAD as the top 3 currencies.
The AUD/NZD is to serve the second function as a signal currency to AUD/USD and cross pairs. Overall, AUD/NZD is truly a fascinating currency pair and vital to the 28 currency pair line up.
EUR/CAD barely serves a purpose to AUD and AUD/NZD but it was added to this week’s trade theme to allow 5 currency pairs to achieve perfect to near perfect entries and targets.
Trades offered are weekly and must cross their vital levels to allow traders to watch the trade to target.
GBP/CAD
Short 1.7217 and 1.7263 to target 1.7034. Must cross 1.7217, 1.7194, 1.7171, 1.7148, 1.7125, 1.7102,1.7079 and 1.7056.
Short below 1.6988 to target 1.6896. Must cross 1.6965, 1.6942 and 1.6919.
AUD/NZD
Long 1.0313 and 1.0298 to target 1.0412. Must cross 1.0319, 1.0340, 1.0361, 1.0382 and 1.0403.
NZD/CAD
Short 0.8685 and 0.8709 to target 0.8625. Must cross 0.8661, 0.8646 and 0.8637.
Short below 0.8613 to target 0.8571. Must cross 0.8589 and 0.8577.
AUD/CAD
Long 0.8961 and 0.8954 to target 0.9006. Must cross 0.8969, 0.8984 and 0.8999.
Long above 0.9014 to target 0.9044. Must cross 0.9029 and 0.9036.
EUR/CAD
Long 1.4479 and 1.4463 to target 1.4561. Must cross 1.4495, 1.4512, 1.4528 and 1.4544.
Long above 1.4577 to target 1.4642. Must cross 1.4593, 1.4609 and 1.4625.