The Aussie Dollar and recap.

Hello all,

Tonight I want to recap on the Euro, the week before last's chosen currency pair for the week and also the JPY from last week and then to show you an interesting set-up on the AUD.

The EUR, I mentioned favouring a short and said I was a confluence short, but there is still the V.I. to deal with so continue to watch this and trade at your discretion.

The JPY is currently in DD territory for a short but with the short term trend still up but everything said last week still stands and a short trade could be favourable, although watch the outcome of the possible bullish flag forming and await an confirmation before trading.

Tonights chart is of the AUD and is in an interesting position which you will have to decide on.
Fridays close stood less than 200 pips south of 2009's high, and although the short term trend is down the medium and long term trends are up.

However, mid Novembers 09 high hit a fibonacci reversal area and saw a subsequent 600 pip plus drop, and now price stands at a fibonacci reversal area of that fibonacci reversal area with another 123 pattern formation and a candle formation on Friday.

Confluences are building for a reversal but it would be a trade against the trends and so more emphasis needs to be placed on getting a good entry point, should the relevant basket of confluences occur.
On the other hand, should it break this area north then there is possible strength to the upside, we shall have to wait and see.

As always please ensure to do your own analysis before taking any trades.

Charts courtesy of AdvancedGet.

Good luck.

Clayton Farnworth.