AUDCHF - When to go Long
From the larger timeframe, AUDCHF formed an inverted H&S pattern. It failed to rally and retraced back to 38.2% of the rally. This tells us that the inv. H&S is still in play. Switching to H4 charts, with the help of the median line we see how price has been playing out.
A risky trade would be to long at 0.822 - 0.8219 regions with stops below 0.81209.
A safer entry would be to wait for price to interact with 0.8280 which should see a small resistance and then put in a pending buy at 0.822 and 0.825.
Targets come in at 0.845 and 0.8538
Note: An ideal set up would be for RSI to test 40 from above (look to the left).
Risk: If 60 RSI puts in a resistance, it could be indicative of RSI dropping back to 40 for support or the start of a downtrend. Therefore, once price moves considerable distance, cover long positions to BE.
A risky trade would be to long at 0.822 - 0.8219 regions with stops below 0.81209.
A safer entry would be to wait for price to interact with 0.8280 which should see a small resistance and then put in a pending buy at 0.822 and 0.825.
Targets come in at 0.845 and 0.8538
Note: An ideal set up would be for RSI to test 40 from above (look to the left).
Risk: If 60 RSI puts in a resistance, it could be indicative of RSI dropping back to 40 for support or the start of a downtrend. Therefore, once price moves considerable distance, cover long positions to BE.
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