Currently looking at the Aussie versus the dollar. The pair has shown some significant correlations between price action and previous price action levels over the last period. For that reason alone one should be dedicated to this chart, and have a plan for taking advantage of the upcoming price development. Further on we are seeing a clean and strong uptrend which in itself enhances our odds as long as we look to go in the direction of the overall trend.
AUDUSD 15M 21st of october
At the current level of price action there has been multiple bounces back from resistance, which is not what we have seen earlier on in this trend. This might indicate partly that we could be seeing a weakening of momentum, for which we should keep an eye out. On the contrary we have a 0.9675 area which has seen massive testing and is now very well established. A possible break upwards would therefore present a very significant potential in that:
A) a continuation of the uptrend momentum could drive price far up further
B) the '75 level being as established as is the case, Risk:Reward will be very lucrative
So in conclusion the planned line of action herefrom: if a break occours, we will look to enter at a retrace to around the 0.9675 level.
Thoughts on stop loss level and take profit will be added in the event of a break.
ReplyDeleteAnd here we go. We have the break in one extreme move, apparently due to employment numbers.
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