Every day I run a Rate of Change scan across three timeframes for each of the major currencies. As we head into the new week, the scan is showing that USD is the strongest currency, while AUD is the second weakest (behind JPY and tied with NZD). This is enough for me to take interest in AUDUSD as a possible bearish trade (and USDJPY as a bullish trade).
Now that the scan has us interested, when we open up the 1H chart we can see a beautiful downtrend on Ichimoku. The Kumo is thick and angled down, Tenkan-sen and Kijun-sen are angled down, Chikou is below the candles, and price is consolidating near a point of horizontal support. All of this combined tells us that the market equilibrium is heading down with bearish momentum.
IF price breaks below the horizontal support, I will look for a short opportunity. If it rebounds, I will stay away until it comes back. It's that simple!
Now that the scan has us interested, when we open up the 1H chart we can see a beautiful downtrend on Ichimoku. The Kumo is thick and angled down, Tenkan-sen and Kijun-sen are angled down, Chikou is below the candles, and price is consolidating near a point of horizontal support. All of this combined tells us that the market equilibrium is heading down with bearish momentum.
IF price breaks below the horizontal support, I will look for a short opportunity. If it rebounds, I will stay away until it comes back. It's that simple!
Trade active:
I really love this trade. A clean break through support, small retracement, and then slamming down again.
I entered on the highlighted orange zone and will trail my stops using Ichimoku.
Currency strength scanner still shows AUD as weak and USD as strong. I expect this downtrend to continue to daily/weekly support.
I entered on the highlighted orange zone and will trail my stops using Ichimoku.
Currency strength scanner still shows AUD as weak and USD as strong. I expect this downtrend to continue to daily/weekly support.
