Level Breaks giving Bearish signal in AUDUSD and GBPUSD
Updated
The AUDUSD is shown here with a reasonable wave count that shows the likely target of a move lower, break of the black line marking the recent low confirms the bearish view suggesting that price can move to the area marked by the blue wave (C). What is interesting is that the GBPUSD is showing almost exactly the same wave pattern, this is quite rare as the European and ANZAC currencies do not normally correlate that highly. It adds confidence to the view that they are headed lower. Unsurprisingly the dollar index is showing a bullish pattern and several pairs are showing trade potential.
I will be looking to sell any bounce that unfolds with a good structure and has a reasonable size in AUDUSD or GBPUSD (USDNOK and USDSGD are good second options). The current C wave should unfold in 5 mini waves and give a couple of chances to enter. I already have a buy order in place on USDMXN so I will have to watch my exposure to dollar strength, that USDMXN order has been in place for a few days and the price is moving slowly towards my buying area. If a trade materialises i will publish it so please follow if you would like to see it.
I will be looking to sell any bounce that unfolds with a good structure and has a reasonable size in AUDUSD or GBPUSD (USDNOK and USDSGD are good second options). The current C wave should unfold in 5 mini waves and give a couple of chances to enter. I already have a buy order in place on USDMXN so I will have to watch my exposure to dollar strength, that USDMXN order has been in place for a few days and the price is moving slowly towards my buying area. If a trade materialises i will publish it so please follow if you would like to see it.
Trade active
sold AUDUSD at 0.7405, stop loss 0.7433 target 0.73.Trade active
Stop loss moved to 0.7410, this covers the recent high. If i am right and a small wave has completed at this point then that point should hold. The previous low is at 0.7348 which would give a 2:1 risk reward on this trade with the 3:1 level being 0.7321 either of these would make an adequate targetTrade active
Stop to break even, short-term bearish sequence now activeTrade closed: target reached
Price hit the 0.7348 overnight and closed for a risk reward of 2:1 giving a 4% gain. I will sell the next pullback although there are a number of options GBPUSD, USDSGD both look excellent opportunities.
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