Com Dolls Are Taking Turns On The USD – Time For The Aussie
As we mentioned yesterday in our last forex update, the commodity currencies or Com Dolls as they are known, have flourished in the past month or so.
They have been taking turns attacking the USD. The NZD/USD pair provided the latest attack yesterday as it climbed about 60-70 pips higher.
The other two commodity currencies (AUD & CAD) were trading sideways, which would make a forex trader think that this uptrend has run its course and now these forex pairs are consolidating.
That wasn’t the case yesterday though. Nevertheless, we didn’t get fooled by it because this has been the case for quite a long time in these pairs – when one of them made a run, the others hang around for a while, only to take their turn the next day.
Today is that day for the Aussie, and the Australian GDP report helped things as well. The Q1 GDP number was a lot smaller than the previous quarter, but the market is satisfied that it came in 1 point above expectations.
AUD/USD has gained about 65 pips since the release early this morning and is still looking energetic, so we’re not getting in the way. Instead, we’re waiting for a retrace lower, probably to 0.7530 where the 20 SMA is waiting on the H1 forex chart.
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