AUDUSD : 100 pips trade on either side. 9/5/2013

A good opportunity for a 100 pips trade on the AUDUSD has appeared under the 4 Hour timeframe.

The current setup at the moment is set for a short, however long trades can be placed under certain conditions.

Read about the Trend/Wave/Extreme system here

 

AUDUSD (4-Hour) Sell

 AUDUSD 09.05

Why Sell

 

  • A continuous down trend line
  • A falling trendline acting as a resistance which keeps holding
  • Trend (long term) indicators are pointing down
  • Extreme indicators are pointing oversold
  • The pair completed a 100 pips up move correction, hence the up move may be over

 

Note: wait for 2 strong down candles prior to selling. Make sure you place a stop loss to avoid having the breakout of the falling trendline make the pair shoot higher.

 

Should you wish to BUY wait for a strong breakout to the upside of the falling trendline resistance. This should be around 1.02600.

Read about the Trend/Wave/Extreme system here.

The following is an analysis of the currency markets using the Trend/Wave/Extreme system . You can read about the system here. Please read our Risk Disclosure and Terms of Use  prior to making a trade using this information.