Trade view /
18 July 2016 at 7:31 GMT
Sitting within a channel formation. This can be seen as a bullish flag that has a bias to break to the upside. Dips to be bought.
I am short AUDUSD this morning and here is why:
Monthly: Holding within an expanding wedge formation. This has an eventual bias to break to the downside. The target level for the breakout is the start of the formation. This lines up with a 261.8% extension at 0.4735. We have a bearish Evening Doji Star from the high (March/April/June formation).
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Source: Saxo Bank
Weekly: In a corrective channel formation and rejecting gains close to the 78.6% pullback level of 0.7686. Posted a Doji candle last week.
Daily: Posted a bearish Outside Day on Friday. This formation often indicates the start of a new trend. Although we are holding within a corrective channel formation, we have broken back inside the trend of lower highs (false breakout).
30 minutes: Broken through the trend of higher lows in an impulsive manner on Friday. We have a 261.8% extension level at 0.7533. This is close to bespoke support at 0.7538 and the channel base. This is our target area today.
Management and risk description
If/when the target is achieved, we will look to sell into the bounce (corrections).
Entry: short one unit at 0.7593.
Time horizon: today.
— Edited by Michael McKenna
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