The Australian Dollar has initially broken above the 0.70 level during the week but then was repelled (which is think it’s just a fake-out price movement), as we have not been able to break above the 0.71 handle which is my signal to start buying for a longer-term move. Until then, I have to assume that we are either going sideways or breaking down.
Quite frankly, the market is overbought and has been for some time. Now we have to ask a lot of questions of the Australian dollar and as to whether or not it can continue to show this type of strength.
At this point in time, the market is looking highly likely to continue going lower, which would be an extremely negative move as it would show a complete rejection from above. We are in a downtrend, and of course there are a lot of things out there that could cause major issues.
Trading Plan:
i) SHORT when the price has pulled back to the price level of 0.69062 with the Take Profit 1 at 0.66865 and Take Profit 2 at 0.64087.
ii) LONG when the price breaks the resistance level of 0.71 with the Take Profit point at 0.71619.
Author:
S.I.D. Aizu
Quite frankly, the market is overbought and has been for some time. Now we have to ask a lot of questions of the Australian dollar and as to whether or not it can continue to show this type of strength.
At this point in time, the market is looking highly likely to continue going lower, which would be an extremely negative move as it would show a complete rejection from above. We are in a downtrend, and of course there are a lot of things out there that could cause major issues.
Trading Plan:
i) SHORT when the price has pulled back to the price level of 0.69062 with the Take Profit 1 at 0.66865 and Take Profit 2 at 0.64087.
ii) LONG when the price breaks the resistance level of 0.71 with the Take Profit point at 0.71619.
Author:
S.I.D. Aizu
