A lot of things going up in the markets today. We can see USD and AUD making gains against most of their counter-currencies and hence examine a potential trade between the two as a reverse head and shoulders pattern is developing.
After performing a quick scan of the markets using the Trend/Wave/Extreme under the 4 Hour timeframe we can see that the
- USD continues to be up trending against all its counter-currencies.
- GBP is now falling (GBPUSD down,EURGBP up) following anouncement from BOE that help continue its downtrend
- AUD seems to be making gains (AUDJPY uptrend,EURAUD uptrend,AUDUSD wave and extremes up)
Based on the above we examine the potential of an AUDUSD trade.
AUDUSD (H4) BUY/SELL ?
This is a trade that can go both ways so it's up to you how you play it.
If you want to SELL
The Trend/Wave/Extreme mini view indicator is showing us
- Trend bar is marginally Down Red filled pointing Down Trend
- A down trend line chart pattern.
- Wave bar is showing Up and Extremes bar is pointing highly overbought.
- Significant resistance at 0.9300-0.9330 area,
*Note: The pair is still in correction mode so wait for two consecutive candles prior to selling as it highly likely to move higher prior to dropping.
If you want to BUY
The Trend/Wave/Extreme mini view indicator is showing us
- Trend bar is marginaly Down Red filled pointing Down Trend is about to finish and Up Trend may start.
- A potential reverse head and shoulders chart pattern which a signal for reversal.
- Wave bar is showing Up and Extremes bar are showing up is a sign of strong up move momentum
*Note: Wait for a strong breakout of the 0.9300-0.93300 area prior to buying this pair
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.