Almost like a red or black call on the roulette table trying to predict a triangle breakout. And you can safely predict that both sides will be ready with the explanation when the break occurs. Problem with that is for every winner there is a loser
AUD/USD: Coiling for a potential breakout…but which way?
Most major markets continue to consolidate today amidst the essentially data-less global trade. Probably the day’s biggest news was the election result in Canada, where the Liberal Party, led by Justin Trudeau the son of former Prime Minister Pierre Trudeau, secured a surprise majority. The majority seemingly gives Trudeau a mandate to enact the expansionary fiscal policy he campaigned on, including a plan to run stimulatory deficits for the next three years. At the margin, expansionary fiscal policy could relieve some of the pressure on the Bank of Canada to try to stimulate the economy via monetary means, but ... (full story)