Price on AUDCHF
has been in a tight range since July 4, which I'm interpreting as an accumulation pattern -- i.e. buyers stepping in and quietly building their position. Just below this accumulation zone, which happens to coincide with a 50% Fibonacci retracement
from the recent swing low to swing high, are the 50 SMA
and 200 EMA
. As such, I think there are enough signs needed to put on a trade. The biggest issue is that the trade probably should have been placed yesterday, and the opportunity may have passed us.
In any event, I put my order to go long at 8356, with my stop at 8306
and my target profit at 8506. I'm risking 50 to gain 150, which gives me a reward/risk of exactly 3.