Good Evening / Morning Dynamic Traders"Better to have tried and failed, than not tried at all"
Cross = AUD : Day Chart (Posted Below)
Apart from the weather in UK, what a great week end. Man Utd winning the title again which gives the players a weeks rest before we tackle Barcelona in Roma on 27th May. I can't wait.
It's always great to have that winning feeling inside you no matter how many times you do it. Think what you feel like when you lose on your trade compared to when you win ! Let's keep that winning mentality going in our day to day lifestyle. Believe and you will achieve.
I believe I might have found a nice little earner for you this week in the AUD. Lets start with a clean sheet and see what has been happening.
On the monthly chart we were in a up trend from April 2001 until the credit crunch took effect in July 2008. Since then we had a 5 month pullback till November 2008, the last 3 months being an uptrend and price recently breaking through the VI. Is price heading back to pre credit crunch position ? Look at RSI and Stochastics, what do you think ?
Our weekly chart shows the pullback / correction in more detail and a double bottom "W" pattern in price is clear to see. 0.7700 has played a key support and resistance over time and price has recently hit this mark again before reversing down. Interesting the VI sits slightly above this point and RN 0.8000 is also in our proximity. A strong move up will be needed to break through this confluence of events.
Looking at the Day chart, with trend lines drawn and also the key 0.7700 Support / Resistance line. We see price has been sqeezed almost to the point of erruption. We have cleared the VI and have attacked the resistance recently, is it time to try again ? Higher highs and lows since March would have us believe so. Stochastics are showing a false reading on "Advanced Get".
With the long term trend looking Bullish then a BOB of the trend line and confirmed by the breaking of the resistance line looks the suitable plan for those that are patient. With some 150 pips available for that to happen the more aggressive may move to the 60 Min chart.
With time on your hands to follow your trade the 60 mins is showing price coming off the bottom trend line and into an uptrend. We have broken through the VI and a ESLT out of your "Dynamic Traders toolbox" may get you into the trade.
Please check your News items for the week and do your own analysis before entering any trade. Enjoy your learning and I will speak to you soon.Courtesy of Advanced Get / E SignalTrade with PassionJohn MaherForex Analyst
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