The AUD vs NZD is pushing towards it's all time low of 1.04280 which was hit on 12/2005. Since setting the all time low price has bounced off of that level and pushed upwards to an all time high of 1.37941 set on 3/2011. Ever since then the pair has been in a downward spiral attacking the all time low level and finding support near that low at 1.05490 this past January. Price moved some 400 pips away from that support level but once again we are nearing that level at about 90 pips away. Well what's all this mean? Looking back in time at this monthly chart we can see all the rejections at this level. The last major rejection of the level on the monthly time frame shows the rejection and a 800 pip wick back on 10/2008. This level appears to be a really strong support level therefore giving traders a great opportunity to make a profit. We expect a S&R level to hold until broken so past history says this level is more than likely to hold. Look at price action to enter the market long at the support level. Until then have a great trading day and God bless!
Comments
Codfelaz
⋅
Hi Chaos, firstly thanx for the posts and may Papa God continue blessing you. Secondly this seems like a possible high probability trade, if so how do you trade positions that you feel strongly about, in terms of lot sizes?
ChaosTrader63
⋅
Codfelaz hello! On a position that I feel strong about I place the max lots that I can for the position based off of my money management to the point where I know my stop loss and how many lots if I lose will not be more than a 3 percent loss of my overall profit. The bigger the stop loss the less lots I can use. So I don't scale into a position but I will scale out of a position just to secure profits. Hopefully that helps you! God bless!
ChaosTrader63
⋅
We are now bouncing off of the support level near the all time low and price is starting to move higher. I am expecting price to retrace once more before really moving forward.
ChaosTrader63
⋅
Almost 2 weeks since posting this and we are now very close to the all time low at 1.04280 and now the market has to talk to us and let us know if it's going to reverse or continue the bearish run. Waiting on price action at the key levels of S&R to see where we are going. Be patient cause this could be a nice trade if taken in the right direction based off of S&R and price action.