Weekly chart:
Since the low at 1.1606 AUD from July 2012, this currency pair has been able to break away considerably upwards. When the red downtrend broke at 1.4345, the path for a new upward trend was free. This pair used this template, so that we now have a nice big correction zone between 1.5839 AUD and 1.368 AUD. For a while now, the price has been sticking around in this zone, frequently offering new opportunities to speculate on a continuation of this trend. As long as the closing price does not underbid the green box, these opportunities will also remain available.
Daily chart:
The large trend in the daily chart is joining in with the big picture from the weekly chart. The correction zone runs between the same markers here. Here, however, the correction was able to run a little deeper, such that one definitely still has to summon up some patience in this trend size. But here, too, the same statement goes: as long as the green box remains intact, so will the trend.
Hourly chart:
The hourly chart is showing us this entry opportunity even more clearly, especially given that this was already visible last week and was also used by myself. The DowHow signals appeared as early as 22-09-16, but the price has not yet been able to clearly break away so far. The current correction, therefore, is offering another chance to speculate on the next movement. With a stop beneath the green box, one can let oneself be stopped out on the way upwards in the next few hours. However, if the closing price exits the green box in a downwards direction, the scenario would be over.
For presentation purposes the trading software “AgenaTrader” has been used.
IMPORTANT NOTE:
Exchange transactions are associated with significant risks. Those who trade on the financial and commodity markets must familiarize themselves with these risks. Possible analyses, techniques and methods presented here are not an invitation to trade on the financial and commodity markets. They serve only for illustration, further education, and information purposes, and do not constitute investment advice or personal recommendations in any way. They are intended only to facilitate the customer’s investment decision, and do not replace the advice of an investor or specific investment advice. The customer trades completely at his or her own risk.
Exchange transactions are associated with significant risks. Those who trade on the financial and commodity markets must familiarize themselves with these risks. Possible analyses, techniques and methods presented here are not an invitation to trade on the financial and commodity markets. They serve only for illustration, further education, and information purposes, and do not constitute investment advice or personal recommendations in any way. They are intended only to facilitate the customer’s investment decision, and do not replace the advice of an investor or specific investment advice. The customer trades completely at his or her own risk.
Recommended Content
Editors’ Picks
EUR/USD drops below 1.0800 after German Retail Sales data
EUR/USD has come under fresh selling pressure and trades below 1.0800 after the data from Germany showed that Retail Sales declined by 1.9% MoM in February. Resurgent US Dollar demand is adding to the downside in the pair. US data are next in focus.
GBP/USD stays weak near 1.2600 amid market caution
GBP/USD remains defensive near 1.2600 in European trading on Thursday. The hawkish tone from Fed Governor Christopher Waller keeps the US Dollar afloat amid a cautious trading environment ahead of key US data releases and the Good Friday trading lull.
Gold price bulls keenly await US PCE Price Index on Friday before placing fresh bets
Gold price (XAU/USD) continues with its struggle to make it through the $2,200 mark on Thursday and oscillates in a narrow trading band through the early part of the European session.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
The other terminal rate: How far will policy rates be cut?
Recent communication by the Federal Reserve and the ECB has made it clear that the first cut in official interest rates is coming. Both central banks are saying the same but the ECB communication is more opaque than that of the Fed.