AUDUSD: Ready To Explode? NOT! What Happened?
Current Status: LONG +29 pips
We went LONG on this pair recently based on the price action around that MAJOR uptrend line.
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Whenever something does not go according to plan, I always refer back to it and figure why. You always learn more from your mistakes than you do your successes IF you take the time and go back and study them! That's what I do and I try to share that and try to explain when possible so that others can learn from it as well. This is a habit of ALL successful people in life. Not just traders. It's a habit you MUST learn to become a successful trader! Or in life!
I last posted an analysis where I said "AUDUSD: Retesting KEY Support Zone. BIG Explosion Soon!" . Well, it didn't happen...YET! Prices dropped through that MAJOR uptrend trend line and did not make any dramatic reversal from there. At least not yet. At this time, it has reversed right back up through that trend line BUT as is usual when prices initially break trend lines and reverse back through, that initial break is usually a foretelling that prices do intent to break through again but more decisively. And that is what I am expecting to happen here.
The idea that we might see a BIG EXPLOSION in this pair that I posted about before was not purely based on anticipating a MAJOR reversal coming off that MAJOR trend line but more on the fact that I am seeing that whenever the next reversal comes, that reversal will kick off the start of a wave 3. What I was expecting to happen was that the current wave down which I am seeing as a wave 2 could've ended at that MAJOR trend line. But it didn't. That is what happened and so, although the idea of WHERE the reversal might happen was wrong, the overall idea that the next move up from a reversal should be a wave 3 is NOT YET invalidated. However, I DO expect that prices are going to drop again.
DAILY CHART
As you see on the DAILY chart above, the reason why I am expecting a wave 3 explosion up coming which I thought would happen at the MAJOR trend line is because I see this current wave down as a wave 2. It could've ended at the MAJOR trend line which it didn't but as you can see here, it can still drop more without invalidating the idea that this is a wave 2. You see here that I expect it to drop down to the next MAJOR SR level that I have marked on my chart around the .74000 level which also happens to be the .886 retrace of what I have marked as the wave 1. Wave 2's very often retrace from .618-.886 of wave 1's. So watch for indications of reversal-type price action around the .75000 - .74000 levels which is the .786-.886 fib retracement of wave 1.
We went LONG on this pair recently based on the price action around that MAJOR uptrend line.
---------------------------------------------------------------------------------------------------------------------
Whenever something does not go according to plan, I always refer back to it and figure why. You always learn more from your mistakes than you do your successes IF you take the time and go back and study them! That's what I do and I try to share that and try to explain when possible so that others can learn from it as well. This is a habit of ALL successful people in life. Not just traders. It's a habit you MUST learn to become a successful trader! Or in life!
I last posted an analysis where I said "AUDUSD: Retesting KEY Support Zone. BIG Explosion Soon!" . Well, it didn't happen...YET! Prices dropped through that MAJOR uptrend trend line and did not make any dramatic reversal from there. At least not yet. At this time, it has reversed right back up through that trend line BUT as is usual when prices initially break trend lines and reverse back through, that initial break is usually a foretelling that prices do intent to break through again but more decisively. And that is what I am expecting to happen here.
The idea that we might see a BIG EXPLOSION in this pair that I posted about before was not purely based on anticipating a MAJOR reversal coming off that MAJOR trend line but more on the fact that I am seeing that whenever the next reversal comes, that reversal will kick off the start of a wave 3. What I was expecting to happen was that the current wave down which I am seeing as a wave 2 could've ended at that MAJOR trend line. But it didn't. That is what happened and so, although the idea of WHERE the reversal might happen was wrong, the overall idea that the next move up from a reversal should be a wave 3 is NOT YET invalidated. However, I DO expect that prices are going to drop again.
DAILY CHART
As you see on the DAILY chart above, the reason why I am expecting a wave 3 explosion up coming which I thought would happen at the MAJOR trend line is because I see this current wave down as a wave 2. It could've ended at the MAJOR trend line which it didn't but as you can see here, it can still drop more without invalidating the idea that this is a wave 2. You see here that I expect it to drop down to the next MAJOR SR level that I have marked on my chart around the .74000 level which also happens to be the .886 retrace of what I have marked as the wave 1. Wave 2's very often retrace from .618-.886 of wave 1's. So watch for indications of reversal-type price action around the .75000 - .74000 levels which is the .786-.886 fib retracement of wave 1.
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Facebook Group: facebook.com/efxselect
Twitter: @andrewefxselect
Website: efxselect.com
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