Hope you all enjoyed your 330 pips combined on my aussie trades last week!. Here is my outlook for what is next to come.
So the bottom purple zone was resistance but has been absolutely rekt so now we look to come back down to retest it (confluence one), The two purple trend lines shows a wedge which has been broken so we also look to come back and retest this area (confluence two), The cyan trend line is actually a weekly trend line that goes all the way back to Feb 2018...This trend line I found to be the best fitting for 2 years worth of data it has been tried and tested multiple times in the past two years proving it to be valid although it doesn't look valid on the lower time frames, the fact that it has stood the test of time and we have now broken it (significantly) this week we look to come and retest it now because it's been around for so long it provides extra strength to my trade if it comes down to retest it and then close above it (confluence three). The fibs are being respected on the 61 level but we have the 78 just below which lines up great with our analysis (confluence four). I haven't included it because the chart looks a bit messy to me already but if we take a trend line from the most recent high and follow the trend down it creates a very tight descending wedge with the cyan trend line (confluence 5).
The possibility of getting stopped out is always their so please trade at your own risk and this isn't financial advise, make sure you use proper risk management 1-3% especially on yen pairs as you can loose money very quickly with them.
My bias will only change if we break the bottom purple trend line, retest it and close below it.
Happy Sunday
So the bottom purple zone was resistance but has been absolutely rekt so now we look to come back down to retest it (confluence one), The two purple trend lines shows a wedge which has been broken so we also look to come back and retest this area (confluence two), The cyan trend line is actually a weekly trend line that goes all the way back to Feb 2018...This trend line I found to be the best fitting for 2 years worth of data it has been tried and tested multiple times in the past two years proving it to be valid although it doesn't look valid on the lower time frames, the fact that it has stood the test of time and we have now broken it (significantly) this week we look to come and retest it now because it's been around for so long it provides extra strength to my trade if it comes down to retest it and then close above it (confluence three). The fibs are being respected on the 61 level but we have the 78 just below which lines up great with our analysis (confluence four). I haven't included it because the chart looks a bit messy to me already but if we take a trend line from the most recent high and follow the trend down it creates a very tight descending wedge with the cyan trend line (confluence 5).
The possibility of getting stopped out is always their so please trade at your own risk and this isn't financial advise, make sure you use proper risk management 1-3% especially on yen pairs as you can loose money very quickly with them.
My bias will only change if we break the bottom purple trend line, retest it and close below it.
Happy Sunday