0.6600 RETEST?
The 1st of August saw price break below the 0.6600 - 0.6660 zone in an impulsive move to the downside. Since then, the Aussie has traded lower proceeded by a period of choppy price action. As a trend-trader I am out of the markets once we get into sideways movement and one of the rules I follow is "Patience Is A Position". It is at the beginning of November we have started to see a shift in trend and for the first time since August, price is now back at the 0.6600 - 0.6660 zone and is currently trading just below. What I am looking for, is a swing trade and a reason to short the market from this point. To do so, I would need to see a shift in market structure on lower timeframes such as M5; M15, M30 or H1. Once the market structure on the lower timeframe comes into alignment with a higher timeframe; I execute. The set-up becomes void if price breaches the identified zone of interest by closing beyond the zone and there is no shift in market structure. This means going back to the drawing board; looking at how the market is behaving, and generating a fresh idea...or staying in the sidelines until a familiar pattern re-emerges.
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