Short

EURAUD 60 MIn Cloud Breakout

Updated

Monthly and Daily Direction is bearish.
I anticipate the market will reverse down into the cloud
bounce up off the Senkou B (bottom of the cloud)
then stall between the Senkou A (top of the cloud) and the
resistance level at 1.58600
For the cloud breakout we will need the following;

1. A cloud penetration;
2. A TK cross
3. The Chikou below price
4. A Kumo twist

** You can take the Cloud channel trade (long at the Senkou B)
and that is an advanced technique with low risk targeting the Snkou A

I will update this post as the market unfolds

Note

The Market has entered the cloud but is in a tight consolidation.
If it does not move to the bottom of the next few hours, it will invalidate
the Channel trade. The Breakout trade will still be viable.

Note

bottom of the cloud (from above)

Note

The Channel trade is invalid at his time. Still waiting for the Bearish breakout to set-up

Note

The Cloud Breakout is now properly setup with the following parameters;
entry 1.5735
Stop = 1.5829
Risk = 94
Profit Target = 1.5348
Reward = 387 Pips
RRR = 4 -1

Note

Trade active

The Breakout Trade is now Active :)

Trade active

trade ran our way about 60 pips before reversing today. It is now entering a pretty thick descending cloud which should provide strong resistance.

Trade active

This trade is positive about 10 pips. Although I intend to hold my position through the rate decision tomorrow. I would strongly urge everybody in this trade to consider the interest rate announcement in their decision to hold or close.

AGold54

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