Kumowizard

AUDUSD - Sideaway in volatile chaos. Rocket takeoff or crash?

FX:AUDUSD   Australian Dollar/U.S. Dollar
42 0 1
What a range! Might be good for range traders, but it is a disaster for trend followers (for both bulls and bears).

Daily: There is still a good chance AUDUSD             is forming a multiple bottom at Key Support. Something has to happen to force a breakout of this range. Of course it can happen in any directions. Maybe mkt is waiting for the Chinese GDP number.

4 Hrs: Don't take this drawing too seriously, I just rather wanted to show you how difficult to catch the direction when something is consolidating, and also to show how tight this range has become. It formed a horizontal "rocket with a long body". Price is right at the peak of the rocket, which means this rocket will either take off to the sky, or if Price breaks down, it will land crash hard. Since the body of the rocket is long, it probably means it has a lot of fuel tanked in it, so the break will bring a sharp and nice move in any direction.

I buy a 4 days maturity 0,8700/0,8800 Straddle @ 58 points. Probably it will move more than that in one direction. If not, that's my maximum loss within 4 days, which looking at recent volatility is an acceptable risk.
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