Dynamic Trader Forex Blog FXCPS.co.uk: AUD, AUD or AUD

Good Evening / Morning Dynamic Traders

"Better to have tried and failed, than not tried at all"

Cross = AUD in General

Hello everyone, I hope you all enjoyed the last week end of yet another month. July behind us, we now start the 8th month of the year and how is your trading going. As Zaheer has mentioned on our sister site, sitting in front of the screen day in and day out is not too good for you or the screen, try and mix your trading in with enjoying life, whether the gym, a walk or hobbie. Do not become a slave of the screen.

I want you to do some work for me in a moment and as always I have been busy looking for opportunities for both you and me to take some advantage on the market.

I have taken the unusual step of plotting all the AUD combinations on the one DAY chart, with the main cross "AUD" in candlestick formation and the others as line. It is plain to see that the main cross is in an uptrend producing higher high's and higher lows. The chart does look a little confusing, however can you see the BLACK and GREY lines do not follow the price of the "AUD". Black = AUDCAD and Grey = AUDNZD

Let us remove those two crosses and look again at what we have got.

I have added the 200 EMA and 2 trend lines with NO indicators, looking at what is the key aspect of trading, PRICE.

What do you see ?

An UPTREND ?
A BREAKOUT of 3 crosses ?
Above a major RN ?

From a traders point of view it would be considered a risk to trade all 3 crosses, so why not look at the 3 seperately and decide with the addition of some indicators and confluence of events, which you consider the better choice. The reason for not trading all 3 would be the risk if the trade went wrong, you would be wrong 3 times. This is called "Risk management".

Which one do you prefer ?

Charts courtesy of Advanced Get. Data provided by eSignal.

Trade with Passion

John Maher
Forex Analyst