09 Feb AUDUSD - Short
AUDUSD made a lower low and now pulled back towards the former support now resistance. This provides a perfect short entry at the current levels.
Stochastic are not at the extreme levels and the price sits in the middle of the buy/sell zone. I decided to enter as these indicators are lagging. Price action ( lower low) should prevail.
Entering limit order with small stop. Details below
Aussie rallied further than I expected. The pair printed 0.78% Fib retracement at 0.7230 and collapsed back to 0.70 area. AUDUSD printed another engulfing candle on the daily charts. Considering fundamentals, downtrend must be assumed. NZL GDT index printed negative 7.4% last week. AUD is strongly correlated to NZD. We might see both pair resuming downtrend in the coming weeks.
Bears @ 0.7080
Shorter time frame looks the same. Sharp decline from the high should continue after small consolidation. Bears should wait for lower low top be printed and a retrecement towards recent support, now resistance to enter short positions. Bulls would have to wait for a break of the recent high, a pullback towards recent resistance and enter long positions at 0.7220 area.
Date: 02/09/2016
Pair: AUDUSD
Price: 0.7078
Trade: Sell Limit
Lot Size: 0.04
Stop Loss in Pips: 30
Take profit in pips: 200
Risk of Equity: 2%
My Trading Checklist
ARE THERE MAJOR RISK EVENTS TODAY/THIS WEEK: No
Is the market risk off or on? SP500, DAX, NIKKEI. Are the down or up: Risk Off
Is this trade with the trend?: Yes
Did I see it yesterday?: Yes
Is this a pullback measured by Fibs?: Yes
Am I buying support?: N/A
Am I selling resistance?: Yes
Is this entered during London’s session?: Yes
Did the price pulled back from 200MA on 15Min?: Yes
Are stochs extreme on multi charts?: No
Where is the price in terms of Pivots Points?: Not clear to me
Stochastic are not at the extreme levels and the price sits in the middle of the buy/sell zone. I decided to enter as these indicators are lagging. Price action ( lower low) should prevail.
Entering limit order with small stop. Details below
Aussie rallied further than I expected. The pair printed 0.78% Fib retracement at 0.7230 and collapsed back to 0.70 area. AUDUSD printed another engulfing candle on the daily charts. Considering fundamentals, downtrend must be assumed. NZL GDT index printed negative 7.4% last week. AUD is strongly correlated to NZD. We might see both pair resuming downtrend in the coming weeks.
Bears @ 0.7080
Shorter time frame looks the same. Sharp decline from the high should continue after small consolidation. Bears should wait for lower low top be printed and a retrecement towards recent support, now resistance to enter short positions. Bulls would have to wait for a break of the recent high, a pullback towards recent resistance and enter long positions at 0.7220 area.
Date: 02/09/2016
Pair: AUDUSD
Price: 0.7078
Trade: Sell Limit
Lot Size: 0.04
Stop Loss in Pips: 30
Take profit in pips: 200
Risk of Equity: 2%
My Trading Checklist
ARE THERE MAJOR RISK EVENTS TODAY/THIS WEEK: No
Is the market risk off or on? SP500, DAX, NIKKEI. Are the down or up: Risk Off
Is this trade with the trend?: Yes
Did I see it yesterday?: Yes
Is this a pullback measured by Fibs?: Yes
Am I buying support?: N/A
Am I selling resistance?: Yes
Is this entered during London’s session?: Yes
Did the price pulled back from 200MA on 15Min?: Yes
Are stochs extreme on multi charts?: No
Where is the price in terms of Pivots Points?: Not clear to me
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