Short $AUDCAD based on fundamental analysis $AUD $CAD #forex
Economies worldwide slowing down and don't meet their forecast or miss them. Why? There are different explanations. Today I do a quick analysis of AUDCAD, AUDUSD & USDCAD and how I trade them.
As you may or may not know Australia (atlas.media.mit.edu/...profile/country/aus/) and Brazil (atlas.media.mit.edu/en/profile/hs/2601/) together dominate the world's iron ore exports.
Iron ore is the basic source for iron and steel industries. It is essential for the production of steel.
Prices for Commodities like Iron Ore, Steel, Cobalt, Oil (www.tradingeconomics.com/commodities) and so on decreased dramatically in the last months. That's why e.g. AUDUSD goes downwards and USDCAD upwards. Canada's currency is dependent on their oil production and the oil price goes south.
So my plan for AUDCAD is to wait for a pullback to 0.96-0.965 area.
In that area I placed an short position.
As you may or may not know Australia (atlas.media.mit.edu/...profile/country/aus/) and Brazil (atlas.media.mit.edu/en/profile/hs/2601/) together dominate the world's iron ore exports.
Iron ore is the basic source for iron and steel industries. It is essential for the production of steel.
Prices for Commodities like Iron Ore, Steel, Cobalt, Oil (www.tradingeconomics.com/commodities) and so on decreased dramatically in the last months. That's why e.g. AUDUSD goes downwards and USDCAD upwards. Canada's currency is dependent on their oil production and the oil price goes south.
So my plan for AUDCAD is to wait for a pullback to 0.96-0.965 area.
In that area I placed an short position.
