AUD/NZD: Longterm weekly setup
It seems that the trendline which we broke in July could still be re-tested in the next few weeks.
I am therefor basing a setup on that scenario: re-test and bounce off the trendline at a possible S/R zone!
I've placed 3 trades on chart with targets based on the Fibonacci retracements of the last big move down and possible S/R zones.
SL is below the lowest possible S/R zone.
This setup, if it plays out, will take several months to develop so not for all traders...
First target will probably take us to spring 2016 already, the rest much further.
It is possible that we will be up for some range trading too, between the possible S/R zones and fib levels above and below the current price.
Another possibility is a re-test of the parity level on this pair... In any case my SL is there to limit my losses in case that happens and the setup gives me very good R/R!
This pair gave me some trouble the last couple of days/weeks on lower timeframes. I've not been succesfull with it, several setups failed... Therefor I thought I'd start from a clean slate starting from a higher timeframe, as I should have done from the start...
If it works out as described I will base lower timeframe trades on the prevailing trend direction from this setup. It is therefor always worth considering these higher timeframes imo! TOP-DOWN ANALYSIS!
I am therefor basing a setup on that scenario: re-test and bounce off the trendline at a possible S/R zone!
I've placed 3 trades on chart with targets based on the Fibonacci retracements of the last big move down and possible S/R zones.
SL is below the lowest possible S/R zone.
This setup, if it plays out, will take several months to develop so not for all traders...
First target will probably take us to spring 2016 already, the rest much further.
It is possible that we will be up for some range trading too, between the possible S/R zones and fib levels above and below the current price.
Another possibility is a re-test of the parity level on this pair... In any case my SL is there to limit my losses in case that happens and the setup gives me very good R/R!
This pair gave me some trouble the last couple of days/weeks on lower timeframes. I've not been succesfull with it, several setups failed... Therefor I thought I'd start from a clean slate starting from a higher timeframe, as I should have done from the start...
If it works out as described I will base lower timeframe trades on the prevailing trend direction from this setup. It is therefor always worth considering these higher timeframes imo! TOP-DOWN ANALYSIS!
Comment:
Very nice reversal, up 300 pips!
Comment:
Closed 80% at 1.0000, rest is still open with SL at BE, might give it another try soon...
