From the rallying of Japanese Yen to the uncertainties of the Euro with Greeks bailout and e-Coli going on, I think I would rather stay away from them for away :)
Looking at AUD/USD Daily chart as of 8th June 2011. What can we see?
From the previous break out, price have moved up and touch the price line of 1.1010. since then, a lot of talks about price would crawl back down towards 1.02even before it actually wants to continue to drive upwards again.
From end April 2011 to end of May 2011, it does seems like it and with how price action moved in the previous days, looks like a big Bull Flag is being formed.
My take is that, if this follows through on the downside, I would want to ride it and hold it and see if it has enough Bear power in the Bull Flag to touch 1.02even. From the looks of it and using similar swing patterns from the first wave, if it is going to touch 1.02even, it can be during late June, it can be earlier and it can be later or not at all. In trading, anything is possible that's where Stop Loss is very important.
From technical indicators, it is supporting my plan with MACD crossing downwards, stochastics downwards with a Lower High. My short position is opened at the price line of 1.0621. Let's see how it goes.
Trade safely everyone...
1 comment:
I hear the New Zealand Dollar is also particularly vulnerable at the moment?
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