AUDJPY made a bearish impulse after reaching the price territory of the lows of August 2013.
This was a significant low and the first bottom of a correction after a bull rally that lasted for 5 years.
The move higher from 83.770 looks corrective, however we still need a sell signal because price can either extend higher, taking out the previous high. Or the correction is already over at 83.770 by means of a sharp correction.
IF we see the reversal I will target at least a wave C lower which most likely will test at least the 82 price area and most likely even lower.
Updates will follow
This was a significant low and the first bottom of a correction after a bull rally that lasted for 5 years.
The move higher from 83.770 looks corrective, however we still need a sell signal because price can either extend higher, taking out the previous high. Or the correction is already over at 83.770 by means of a sharp correction.
IF we see the reversal I will target at least a wave C lower which most likely will test at least the 82 price area and most likely even lower.
Updates will follow
Comment:
It is almost ready to go. If you are not in the trade watch for consolidation of lesser degree and sell.
Comment:
Comment:
AUDJPY is in a corrective combination. (comparable to USDCAD on daily time frame)
We might have seen the first bearish impulse but I need to see a confirmation by means of a consolidation. My bias is still the same but I need a trade set-up to trade it because the previous move lower reversed sharp and resulted in a new high within the correction of larger degree. This shows why we need confirmations before a trade becomes a high probability trade. The arrows are indicative in terms of what I'm looking for.
We might have seen the first bearish impulse but I need to see a confirmation by means of a consolidation. My bias is still the same but I need a trade set-up to trade it because the previous move lower reversed sharp and resulted in a new high within the correction of larger degree. This shows why we need confirmations before a trade becomes a high probability trade. The arrows are indicative in terms of what I'm looking for.
Comment:
still looking for a short. Updates will follow next week.
still looking for a short. Updates will follow next week.
The structure is still considered to be corrective. However I count the correction itself as an expanded flat (abc). So entering premature is risky because even if we are correct by counting this price action as a correction it can overshoot 87.50.
I never look at levels to assume something. I understand support and resistance but as risk/reward trader there is no point in trading it. However I determined a strong zone before by means of the horizontal dotted line. So IF we see a reversal sign by means of structure out of that zone we can use support/resistance in our favor. Anything else is like playing blackjack. Gamble on red because the last 3 times the outcome was red is the same as sell resistance and buy support because we saw a reversal in the past out of that support/resistance. Safe trades!