Matt Simpson, CFTe, MSTA
CityIndex
With a swing high in place I suspect we have now returned to the bearish move which began at the August highs.
The resistance zone comprises of the Monthly Pivot and 38% retracement. The swing high was followed by a Hanging man Reversal and I am now targeting the 0.828 swing low and 0.82 support level.
At current levels we appear on track to close for a 3rd consecutive bearish day since respecting the 0.846 resistance zone. Whilst there is the potential for direct losses towards 0.828, I will only consider shorting if we do trade back within yesterday's candle range to achive a higher rewad / risk ratio.
Australian Home loans have just come in soft at -0.9% and we will have to wait until Tuesday's Business confidence and and Swiss PPI data for further direction. With any luck wer will see a retracement towards 0.84 and can be a trade to consider early next week.
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