Bit of a joke in the title today because I really haven’t got a clue how to start the week according to the charts. The New York close failed to provide me with a clear direction to start the week. The big winners were CHF and JPY but most charts closed in no man’s land, too far from any immediate S&R lines. So instead of charts, my approach to start the week is more FA/news based.
Prior to the New York close I opened a short position on the Aussie Dollar in anticipation of an unfavourable reaction to the announcement of the carbon tax in Australia. Quite simply, a new tax is never good for business. That’s it. That’s where my thinking starts and ends with this trade. When it comes to charting I often say, “Why the #$*& complicate things?” Same again now. That position may be helped by bigger than expected inflation in China which you’d imagine will trigger further rate hikes there.
But there is one chart that caught my eye but it’s not one for immediate trading. It’s a weekly chart of AUD/NZD.
[right click on chart to open in new tab]