Look beyond ordinary analysis
AUDUSD has been trading lower for 6 consecutive weeks now. The price has formed a sizeable correction from the highs at 0.7750.
As I remain bullish in this market based on C.O.T analysis, it looks like the price is now matured to print another major leg up in the long term.
I will be looking to enter long position from the current levels.
The coming week is an important one. FOMC will shake the prices across the board on Thursday. I expect the market to be silent until then. There are no other, more important risk events than FOMC this week.
The market priced 12% probability of the rate hike in September. There should be no surprises here but the market will be looking out for any hints about December.
Yellen’s tone will determine the price of USD in the short term.
The price can get pretty volatile, depending on Yellen’s comments.
At the moment, AUDUSD has declined and made double bottom on 50% Fib retracement. Since then, the pair made higher high on the lower time frame.
Normally this pattern is pretty accurate and presents a low risk opportunity
Divergence on the daily charts between the price action and momentum indicators gives another confirmation that the price is now oversold.
Enter 0.5 lot at 0.7470
Enter 0.5 lot at 0.7530
Stop loss below 0.7430
Take profit 0.7640
Trade: Buy Limit
Lot Size: 0.03
Stop Loss in Pips: 30
Take profit in pips: 200
Risk of Equity: 2%
ARE THERE MAJOR RISK EVENTS TODAY/THIS WEEK: Yes
Is the market risk off or on? SP500, DAX, NIKKEI. Are the down or up: Not clear to me
Is this trade with the trend?: Reversal
Did I see it yesterday?: Yes
Is this a pullback measured by Fibs?: Yes
Am I buying support?: Yes
Am I selling resistance?: N/A
Is this entered during London’s session?: Not sure. Its a pending order
Did the price pulled back from 200MA on 15Min?: Yes
Are stochs extreme on multi charts?: Yes
Where is the price in terms of Pivots Points?: Support
Filled both positions. I am moving the stop to break even before FOMC (0.75)
Took +180 pips on one lot, second moved to 0.7570 ( booking 100 pips profit)
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192 total views, 6 views today