Forecasting currency price movements 2 months out is always challenging - I have decided to apply some techniques to narrow the range of the currency movement and then decide on a direction.
(1) Narrow the range of currency movement
As per the chart below, I have identified the range over the next 2 months to be from 0.9534 - 1.0234 (700 pip range). This is based on the historical analysis of 12 years of Nov and Dec ranges for the AUD/CAD which identified two interesting points:
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