One Last Move to the Long Term Trendline?
Yesterday I was having a look at AUDUSD and thought to myself when this move is going to end?
This is obviously linked to the indices and when the Nasdaq turns lower, AUD will taper off and the USD will strengthen. I extended the Fib level to the long-term trendline, speculating that the is still another bullish push.
There is a nice bull flag forming. The NFP (non-farm payroll) might be the catalyst for another move higher, at least in the short-term. This could be a fake-out followed by a move lower, however, another consolidation higher with another bullish push is possible. It is important to note that the RSI is above 70, which usually means overbought. Though, this is not a bonified rule, more like a warning to manage your risk.
What am I going to do? I am looking to set up a pending order (P/O) above the recent highs, with a take profit (T/P) around the pink circle I drew on the chart above. Obviously, my stop loss (S/L) will twice as close below as my T/P is above the entry.
Any suggestions? Comments? Please join the discussion.
Hmm I’m on the fence with AUD. It’s definitely exhibiting bullish pressure that hasn’t been seen a while all this pent up demand finally showing in AUD. What looks interesting is that even from AUD/JPY (it’s respecting that 75 more or less) / AUD/CAD (has respected the 93 handle) / AUD/USD (has respected the 69 handle more or less).
I think the tank is showing that AUD has a little bit of leg room left to climb higher but after that I’m not sure what’s the direction.
I’ve only taken a long on AUD/CAD today because the inside of me is screaming that the majority of these commodities this week has been overbought and needs to retrace back a bit before continuing/reversing. Also it happened to be the one out of the 3 thats respected its price support without cracking through in the last few days.
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Thank you for the feedback and it seems like you have a good handle on the AUD. I’ve had a look at the AUDJPY but the past few months I’m not very keen on JPY trades. However, I do have a CADJPY long P/O currently waiting to be opened.
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Yes when it comes to JPY it’s been whipsawing me around.
I do happen to have a long on CAD/JPY as well that opened for me back in the 79 area. I’m ready to get rid of it by 81 to be honest. It’s been super stagnant at the 80 level bouncing back and forth. Definitely in this environment it’s get in and get out immediately. We can always come back in at another level.
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Noted. I’ll keep an eye on the CADJPY today becasue my position opened yesterday and is showing a bit more bullish momentum. I might just close it before the NFP today or at least tighten my S/L.
