There was apparently no motivation for sellers to continue the advance lower and neither does it seem pragmatic. AUD buyers are showing up once more and this looks like the prelude to an exciting momentum gambit.
The trigger comes from a leap above the latent highs, it will move us forward full of energy as shorts start covering and the youthful arrogance of those reluctant to close get margin called. I choose to answer the lows with a gentle position, no more than one or two in the start, and the quietness of a worthwhile virtue.
The whole business of markets is about the advance for our momentum, because the traps have already been set, sellers still think they have won, but only when we zoom out on the macro charts can we truly demonstrate the underlying AUD strength.
So I would tend to describe the above floor as cheap and open. With clearing month end flows and markets trying to get their 2021 trades on early with commodity shortages entering into the picture already, we should emphasise exposure in AUD. Of course, Australian and China relationships are not working perfectly, although I expect this will be the story to track in 2021 rather than December 2020.
Thanks as usual for keeping the feedback coming 👍 or 👎
Trade closed: target reached
⋅
TP1 cleared ✅ ✅
Comment
⋅
Trade closed: target reached
⋅
TP2 cleared ✅ ✅
Trade closed: target reached
⋅
TP3 hit! ✅
Comment
⋅
Nice moves and for those holding their lottery tickets;