[B]PLAYABLE COUNTER-TREND TRADE TAKEN ON DIP BELOW CRITICAL PSYCHOLOGICAL BARRIERS[/B]
[B]GbpAud:[/B] After breaking to 12 year lows by 1.9700 in early May below the critical psychological barriers at 2.00, the market underwent a decent sized correction back above the 2 handle to 2.0600 in late May before finally pulling back once again over the past several days. However, we do not see and real potential for the cross rate to sustain itself below 2, and with the latest pullback stalling out by the 78.6% fib retracement off of the 1.9700-2.0600 move, this sets up a very playable and compelling counter-trend opportunity. Additionally, with shorter-term studies also showing the daily ATR (Average True Range) already exceeded, and with the hourly RSI well below the oversold 30 level, any risk for additional setbacks intraday are also limited. We have cued off of a 30 minute reversal to establish the position. [B]Position: LONG @1.9915 FOR AN OPEN OBJECTIVE, STOP @1.9680.
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[B]Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
If you wish to receive Joel’s reports in a more timely fashion, e-mail [/B][B][email protected][/B] [B]and you will be added to the [/B][B]“distribution” [/B][B]list.
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[B] [/B]Joel Kruger publishes 6 daily pieces:
[I][B]“Tech Talk”[/B] – A Daily Video Highlighting Technical Developments in the Overnight Session of Trade. [/I]
Monday-Friday (between 5:30am-6:30am EST)
[I][B]“Morning Slices”[/B] – Morning Overview using Fundamental, Technical, Flow, and Quantitative Analysis (Includes “Trade of the Day”).[/I]
Monday-Friday (between 6:30am-7:30am EST)
[I][B]“Indicator of the Day”[/B] – [/I][I]A Feature Report that Highlights our Most Significant Technical Indicator of the Day. [/I]
Monday-Friday (between 8:00am-9:00am EST)
[I][B]“Cross Country” [/B]– A Midday Fundamental Update, along with Technical Analysis of Selected Cross Rates. [/I]
Monday-Friday (between 10:30am-11:30am EST)
[I][B]“Scandi Daily”[/B] –[/I] [I]A Specialized Daily Fundamental and Technical Overview of the Nordic Currencies. [/I] (This report is only distributed through email. Please contact [email protected] if you would like to be added to distribution.)
Monday-Friday (between 11:30am-12:30pm EST)
[I][B]“Daily Classical”[/B] – A Daily Technical Overview of the Major Currencies. [/I]
Monday-Friday (published between 2:00pm-3:00pm EST)