TradingView
EuroMotif
Dec 6, 2018 10:26 PM

AUDUSD short idea: AU resistance zones to watch for entry 

Australian Dollar/U.S. DollarFXCM

Description

Lots of back and forth with the Trade War situation.
Plus, a big miss on recent economic news out of AUS has weakened it.
Looks like at least one more leg down, perhaps to end the week at the low.

Background:
I am a longer term AUD bear, anticipating a serious drop yet to come


Since then I have been looking for shorting opportunities such as this recent plan


After a nice ride down, I went long which worked out very well


And then I caught the recent stair step down quite nicely:


After some good news about the US-China Trade War, I was expecting a significant move up:


Then the news turned sour of course, so was looking for a drop from the top


And now I am looking at perhaps one more leg down before any strong bounce

Comment

First resistance seems to be doing its job
I had some limit sells ladered within the red zone, now trailing stops. London will tell us whether AU is weak enough to fall from this first resistance or not.

Comment

Upon furrther measurements, that first resistance seems probable to hold. Here is a closeup with a new fib and notes
It is possible that an ABC wave has completed, to form the larger wave 4 and thus starting wave 5 down. Still suspect London might run it up to the next zone, but so far this looks like weak AU rejected at local resistance.

Comment

I have posted a new Idea as an update, to fine tune the targets for wave 5 end
Comments
rludvik
Very comprehensive explanation, good work.
More