Thing to Think About


COPPER   AND   AUSSIE 
 
 
Recent publications from the world famous trader 
Peter Brandt 
 
point at numerous “Head and Shoulders” formations
true out different time frames in the copper (HG NYMX)
with a tipping point at 323,80
completing all formations .
 
“A close below the June 4 low at 323.80 would complete all three H&S tops and provide a major sell signal for me.”
 
Having that in mind,
here comes the question,
How is that going to effect the FX market?
 
The biggest producers of copper are China and Australia.
China is one party country and for many years have been devaluing its currency.
On other hand , Australia is free democracy with a high yield returns
and much more vulnerable to outside influence by the financial markets.
To sum it up,
your best gauge for shorting the AUD  in time prospective
is the Copper.
Plus , looking at the weekly chart of AUDUSD itself ,
its clear that pair has been in uptrend from March 2009 to April 2011
and since then is in period of congestion
making lower highs and same level (0.9660-0.9640) lows.
 
What counts :
– copper giving up some noticeable gains in the same time frame prior to
– U.S. elections
No matter who is the next President of the U.S.A
any election ever since , is followed by grand hopes and expectations.
Speculators have ride this wave of excitement before
when America celebrates,
and soon after the harsh reality comes back,
and things settle as they were before .
 
So,… be aware ,
be ready to act
and
Make most of it.
 
 
 
 
For those interested in the work of  Peter Brandt
here is a link to the article I mentioned
http://peterlbrandt.com/triple-witching-hour-for-copper-its-one-two-three-strikes-your-out-if-you-are-long-copper/

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