Trade view /
07 July 2017 at 7:42 GMT
We are really struggling do find a good medium-term setup in any of the majors this morning. One cross that has potential is AUDJPY, especially if we get a bad number today on the nonfarm payrolls (AUDJPY tends to track stocks) .
It is always high-risk into the figures, but this trade offers very good risk and reward.
Monthly: Looks to be in a corrective channel formation. We have a congestion zone at 90.00-85.00. The Marabuzo level from June is seen at 84.32 and should act as immediate support (important).
Daily: We looked to have formed a bearish Gartley pattern at the Fibonacci confluence area (161.8% extension at 86.24 and 78.6% pullback at 86.72). The bearish outside day from Tuesday still holds and also offers a negative bias.
Intraday (60 minutes): We have a potential head-and-shoulders pattern. Although a break of the neckline (at 85.65) is needed to confirm the formation, with a Demark 13 (exhaustion) on the intraday chart, I am happy to take a short trade. Demark would suggest a tight stop at 86.50. This is just above the 61.8% level and potential rights holder. I prefer to give the call a little more room to breathe.
The measured move target is 84.33 lining up perfectly with last month’s Marabuzo.
Entry: short at 86.34.
Stop: 86.69 ( a move through 85.65 and stop goes to entry).
Target: 84.35 .
Time horizon: short-term.
— Edited by Michael McKenna
For more on forex click here
Non-independent investment research disclaimer applies. Read more
A compiled overview of Trade Views provided on TradingFloor.com is found here