Looks like we might have an AB=CD buy pattern on the 4 hour for AUDUSD.
Using the Fibonacci Extension tool, I think the CD leg will complete at 1.217 giving us an entry point @ 0.8427. If the CD leg takes around as long as the AB leg to complete (17 bars) that puts this trade on the calendar at the end of Monday or the beginning of Tuesday, but time will tell!
Next, using the Fibonacci Retracement tool on the AB leg gives us our targets. First target is at the .618 retracement (0.8608) at which point our first stop would be 0.8385. Second Target (if you're trading two contracts) would be at the .786 retracement (0.8658) at which point you would move your stop up to break-even.
I'll be taking a look at the hourly to see if there's a smaller trade I can get in; if I find one I'll link it to this one.
I would agree. My chart was made entirely different but suggests a strong long-term buy opportunity at the area 0.8400~0.8350.
slindstr
⋅
Can you add a link to your chart? I'm new to this so I'd love to see how you drew the sam conclusion!
TheNickD
⋅
I was thinking about that but disconsidered it due to the huge mess on my screen.
I will scale back to the weekly so you get an understanding of where I am coming from.
Also note here that even though I do think this is a buying opportunity, I am not getting into this trade as I do not like to get in major extremes. I will wait for a strong move in the up direction before I go in long.
Now that you can see the critical point, let me zoom in to the 4h:
As you can see the blue lines are dragging the trend down through monthly, weekly, and daily ranges. If it breaks below right now (I'm looking at closing) it will suggest the blue trend line becomes support (possibly) and another drop can happen before a rally. Or, as usual, it can simply bounce right now and sky-rocket (I doubt that somewhat but you never know.)