Re Analysing the Aussie

Good evening Dynamic Traders,

First off, may I welcome Zaheer and say I hope you have a great a time with the blog updates as the other bloggers and I do, but above all enjoy yourself with it.
Also may I congratulate Saba on reaching her milestone and may she soon go on to reach her next goal.

Tonight I am going to try to re-evaluate the Aussie as if anyone did their own analysis on this pair from Thursdays blog and decided to take the trade, you would have had the possibility of a couple of hundred plus pips from taking a smaller timeframe trade so well done to you.
However if you are still in the trade tighten up your SL, as we are in a position for at least a bounce up if not a reversal and to this end I would like you to take a look at the 4 hour chart below.

As you can see, the Stochastic indicator is in an O/S territory whilst we are in proximity to the figure. However I do think that we may have a little further South to go before we get the upward climb of some degree.

As we are in a downtrend on this pair, this is a contra trend trade I am looking for, and therefore entry is very important, and so whilst analysing this for yourselves as to whether you want to take the trade work out in advance your possible entry, your stop and your risk as to whether it is within your trading plan parameters.

Charts courtesy of TradeStation.

As always enjoy your trading.

Clayton Farnworth.