Excuse the size of the pic.
Had to post something. Just like shares, whenever I see "surely it must be x, y or z" then that indicates there is a fair way to go.
Also excuse the use of EURUSD on an AUD thread - but a much better example to use.
And why can this one not continue on its merry way ?
There's been plenty of time for anyone to jump off. But they haven't. The carry trade seems to be back in a big big way. Inflation is high. Employment is high, meaning inflation isn't going down.
And look at the scale on the right-hand side of this one.
My rule (from my own experience) - NEVER say SURELY...
Not saying that there won't be a correction - there might - but I can't see a substantial correction in the move from 0.97 to 1.04 for the AUDUSD.... I'm sure a lot of people said the same at parity, and 1.01, and 1.02, and 1.03....
Last Monday we hit 1.03 early, moving back to 1.02 before the next leg up. Today we hit 1.04 early, before....?
I would be using a trailing stop if your target is parity.
Good luck all!!!
:)
