Happy Corner: Aussie (AUD) pairs

Trade summary part 1 - AUDNZD

Waited for 4 days before the price reaches 1.2500 on Thursday. I went short at 1.2517. However, i felt uneasy about this trade. And i went in and out of this trade quickly. Reason being despite the recent rate cut for AUD, AUDUSD remained strong and trended up well. Looking at the AUDUSD chart, it trended up from Monday to Thursday. Only on Friday it went down after failing to break above 1.0300. With the price action for AUD being strongly bullish for this week, i decided not to fight against the trend. Always leave the trading account intact to trade another trade.


Trade summary part 2 - AUDUSD

One of the reasons for the uneasiness on shorting AUDNZD was this. I attempted to short AUDUSD twice this week. First attempt show me a small loss. Second attempt was a breakeven trade. These 2 trades give me a strong hint that AUDUSD is trending up, and it is not ready to go down. Maybe AUDUSD will be ready to trend down for week 42?

If you want to short the comdolls this week, then look no further than the potential mid-channel resistance on AUD/USD’s 4-hour chart! Not only is there a bearish divergence at the level, but stochastic also looks like it’s about to go down. Is this a sign for me to close my AUD/USD trade?


I assume that the bearish Divergence and mid-channel resistance is spotted on the 1 hour chart instead of 4 Hour Chart.

Anyhow, 4 Hour chart is also seems to show some signal to close any long positions on AUD/USD. See chart


Price is reaching the falling trend line at previous resistance and stochastic is reaching to the over bought territory. I am planning to short the pair on formation of some reversal candlesticks at the falling trend line.

We can be overbought for a long time and claSSical trend on FX doeS not work very well (bankS maniPulation). The daily giveS EMA200 aS target. I exPect 1.0320-1.0350 before reverSal.

There’s this nice bullish divergence materializing on AUD/USD’s 4-hour time frame, hinting at an upcoming Aussie rally. Even better, it lines up with the 50% Fib and rising trend line! If you scroll back a little further, you’d notice that this potential support zone is also the neckline of the inverse head and shoulders pattern.


AUD/USD is forming a symmetrical triangle on the 1-hour chart and it looks like it’s about to test the pattern’s resistance. What’s more, stochastic is in the overbought territory! Will the bears come in at the weekly open price (1.0365) or will the bulls dominate for the rest of the week?


Are we seeing a potential continuation of AUD/USD’s rally here? The pair just broke above the top of the rising wedge on the 4-hour chart right after the RBA announced that they’d keep rates on hold for now. At the same time, stochastic is pointing upwards, suggesting that the Aussie has more room to climb. Wait for the candle to close above the wedge if you plan to jump in a long position though!


A new High of 1.0500 may not be far away !!!

Ha! You may be right! After breaking 1.0450, it sure looks headed much higher now! Did you trade this one?

Yes. My TP is at 1.0520. which is almost lining with the falling trend line in the weekly chart.

See the weekly chart…


Will the trend line hold for the 4th time ?

Any thoughts ???

One of the reasons why I haven’t closed my AUD/USD trade is that 1.0400 is still doing a good job at holding off the Aussie bulls. Not only that, but the rising trend line that we spotted last week is still valid! Will the 1.0400 major psychological handle become a support for the pair or will risk aversion drag the Aussie below the trend line?


I am shorting AUUSD on a pullback.


Entry: 1.0400, SL: 1.0480, TP: 1.0240, Risk: 2%. RR: 1:2

BIJOY

AUD/USD just broke below the rising trend line last week but it seems to be pulling up for a quick retest. The 61.8% Fibonacci retracement level is right in line with the 1.0400 major psychological resistance and the broken trend line. Stochastic has already reached the overbought mark, which suggests that Aussie bears could pound really soon.


Good call Thanks

****AUD/USD - New Trade 11-19-12 ****

Trade = SHORT

Entry @ $1.0380
S/L = $1.0430
T/P = $1.0340

This is the chart from the trade taken on 11-19-12. The LIMIT Order was triggered which put me in the trade. The other LIMIT Order I placed at $1.450 was not triggered but I will keep it open because that level is still a valid 2HR Supply Zone. Price did climb all the way up almost hitting my S/L and formed a new 2HR Supply Zone between $1.0420 - .400 before it fell back down. I set another LIMIT Order to go SHORT @ $1.0405 which is the TriggerLine for the new 2HR-SZ just in case prices bounces back up.


If you’re looking for a day trade, then pay attention to AUD/USD uptrend on the 1-hour chart. Stochastic might not be anywhere near the oversold region, but the pair looks like it’s about to aim for the 1.0500 handle. Be careful once it reaches the major psychological handle!


View on AUDUSD


View on GBPAUD


AUD/USD has been making lower highs and finding support near the 1.0200 major psychological handle. The pair just hit the top of the descending triangle that’s forming on the daily time frame and appears to be aiming for the bottom as stochastic just crossed down from the overbought zone. Does this mean that a selloff from 1.0400 to 1.0200 is in the cards?


I thought the RBA rate cut would be the trigger to this avalanche, but I was wrong. Lets see what the week brings.