AUD/NZD: Possible long opportunity after trendline breakout
I was long this pair before based on RSI divergence but we made a new low and my setup failed...
We did break the "down" trendline though and it looks like PA is ready now to move higher so I entered long at market just now.
I am aiming firstly for the 50% retracement of the last big move down which would be a good point to be looking at possible bearish breakout trade to catch some retracement if it comes. That would also be a good point to start looking for possible advanced patterns. It's too soon for that now but as you can see from the setups on chart I am basing my levels on where these patterns regularly make their legs. Therefor my second target is at the 0.886 retracement of the last big move down, which could coincide with a test of that upper trendline!
I will probably take some partial profits at the .382 retracement of that last big move down just to be able to leave my SL untouched before we reach my first real target.
Do note that we broke several lows in the past week, so we might very well continue down from here-on!
More risk-averse traders might want to consider entering long only after we have passed the 1.1000 level (which is where the last retracement of the move down ended), looking at lower timeframe S/R levels to base their SL on.
I'm getting mixed signals from other AUD crosses but not all are evenly correlated so I'm going in long here anyway (I'm short AUD/USD now but AUD/JPY and AUD/CHF might still have some upside coming, couold be shorting them later). I have however adjusted my money management on this one and am not risking more than 0.5% on it.
I'm also basing this one on an idea from anilmangal so please make sure, if you agree with this breakout trade, to visit and like his post first of all! >>
We did break the "down" trendline though and it looks like PA is ready now to move higher so I entered long at market just now.
I am aiming firstly for the 50% retracement of the last big move down which would be a good point to be looking at possible bearish breakout trade to catch some retracement if it comes. That would also be a good point to start looking for possible advanced patterns. It's too soon for that now but as you can see from the setups on chart I am basing my levels on where these patterns regularly make their legs. Therefor my second target is at the 0.886 retracement of the last big move down, which could coincide with a test of that upper trendline!
I will probably take some partial profits at the .382 retracement of that last big move down just to be able to leave my SL untouched before we reach my first real target.
Do note that we broke several lows in the past week, so we might very well continue down from here-on!
More risk-averse traders might want to consider entering long only after we have passed the 1.1000 level (which is where the last retracement of the move down ended), looking at lower timeframe S/R levels to base their SL on.
I'm getting mixed signals from other AUD crosses but not all are evenly correlated so I'm going in long here anyway (I'm short AUD/USD now but AUD/JPY and AUD/CHF might still have some upside coming, couold be shorting them later). I have however adjusted my money management on this one and am not risking more than 0.5% on it.
I'm also basing this one on an idea from anilmangal so please make sure, if you agree with this breakout trade, to visit and like his post first of all! >>
Trade closed: stop reached
