are not at the extreme levels and the price sits in the middle of the buy/sell zone. I decided to enter as these indicators are lagging. Price action ( lower low) should prevail.
Entering limit order with small stop. Details below
Aussie rallied further than I expected. The pair printed 0.78% Fib retracement at 0.7230 and collapsed back to 0.70 area. AUDUSD printed another candle on the . Considering fundamentals, downtrend must be assumed. NZL GDT index printed negative 7.4% last week. AUD is strongly correlated to NZD. We might see both pair resuming downtrend in the coming weeks.
Bears @ 0.7080
Shorter time frame looks the same. Sharp decline from the high should continue after small consolidation. Bears should wait for lower low top be printed and a retrecement towards recent support, now resistance to enter short positions. Bulls would have to wait for a break of the recent high, a pullback towards recent resistance and enter long positions at 0.7220 area.
Trade: Sell Limit
Lot Size: 0.04
Stop Loss in Pips: 30
Take profit in pips: 200
Risk of Equity: 2%
My Trading Checklist
ARE THERE MAJOR RISK EVENTS TODAY/THIS WEEK: No
Is the market risk off or on? SP500 , DAX , NIKKEI. Are the down or up: Risk Off
Is this trade with the trend?: Yes
Did I see it yesterday?: Yes
Is this a pullback measured by Fibs?: Yes
Am I buying support?: N/A
Am I selling resistance?: Yes
Is this entered during London’s session?: Yes
Did the price pulled back from 200MA on 15Min?: Yes
Are stochs extreme on multi charts?: No
Where is the price in terms of Points?: Not clear to me