Aussie continued higher towards 0.7260 during past week’s trading. After reaching a major resistance at 0.7260, it collapsed and closed the week at 0.7130. This was mainly due to a positive data out of US market last Friday.
At daily charts AUDUSD printed a massive engulfing candle closing below the previous four sessions. This is a good bearish signal. Stochastics are overbought and favour short setups.
Looking at lower time frames, Aussie failed to climb above the recent high of 0.7260 and formed double top. After rejecting the resistance, it closed below the recent higher high (marked 5 at the chart below).
This is an indication of more downwards pressure.
Last night AUD missed Building Approvals by a long shot. This could set the negative tone for the rest of the week.
We saw AUDUSD pulled back from the support towards 0.7160, this is a good point for bears.
Date: 03/01/2016
Pair: AUDUSD
Price: 0.7160
Trade: Sell Limit
Lot Size: 0.03
Stop Loss in Pips: 60
Take profit in pips: 160
Risk of Equity: 2%
My Trading Checklist
ARE THERE MAJOR RISK EVENTS TODAY/THIS WEEK: Yes
Is the market risk off or on? SP500, DAX, NIKKEI. Are the down or up: Risk On
Is this trade with the trend?: Yes
Did I see it yesterday?: Yes
Is this a pullback measured by Fibs?: Yes
Am I buying support?: N/A
Am I selling resistance?: Yes
Is this entered during London’s session?: Yes
Did the price pulled back from 200MA on 15Min?: Yes
Are stochs extreme on multi charts?: No
Where is the price in terms of Pivots Points?: Resistance
Trading in Forex Exchange Market is VERY SPECULATIVE AND HIGHLY RISKY and is not suitable for all members of the general public but only for those investors who: (a) understand and are willing to assume the economic, legal and other risks involved. (b) Taking into account their personal financial circumstances, financial resources, life style and obligations are financially able to assume the loss of their entire investment. (c) Have the knowledge to understand Forex Exchange Market and the underlying assets.
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