In this analysis, we will take a look at the major commodity currencies (AUD, NZD, and CAD) against the US Dollar.
Australian Dollar US Dollar
The Australian dollar broke below 2016 low but bounce back quickly. The pair looks to be in a sideways correction that is taking the shape of a flat. Wave (A) was a zig-zag connected by a wave B flat correction.
We should see a correction soon, but as long as it stays above 2019 low (0.6743), there should be more upside towards 0.75-0.80 area.
Trading strategy AUD/USD:
Stand aside for now, and look for corrective price action towards 0.70-0.68 for a buying opportunity.
New Zealand Dollar US Dollar
The New Zealand Dollar is extremely closely correlated to the Australian Dollar, but it has been holding up stronger against US Dollar than the Australian Dollar. The low could already have been put in place in October 2018, so it might be leading the AUDUSD that made a new multi-year low at the start of 2019.
From a short term perspective, it looks like the correction could be over, but I recommend to keep stops at October 2018 low (0.6425) for a possible move lower towards 0.65 area.
Trading strategy NZD/USD:
Look for buy opportunities near 0.6650 and 0.6550.
SL: 0.6425.
TP1: 0.7400
TP2: 0.7700
Canadian Dollar US Dollar
The USDCAD is inversely correlated with AUDUSD and NZDUSD, but the wave structure is different.
AUDUSD and NZDUSD look to be in a flat correction, but the USDCAD looks to have completed a triple zigzag correction.
Trading strategy USD/CAD:
For now, stand aside and look for corrective upside moves to sell into.
Australian Dollar New Zealand Dollar
The AUDNZD cross is interesting as it suggests that the Australian Dollar will become stronger than the New Zealand Dollar in the coming months ahead.
TraderWgun has over 4 years of experience with Elliott Wave Principle, 6 years trading part-time. Twitter handle @atliveanner
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