FX:AUDUSD   Australian Dollar/U.S. Dollar
231 3 10
For my previous post and context see link below:

I showed my projection by means of 4 steps and we saw the first step which makes this potential trade towards 0.80 even more likely. However we trade what we see and although I like to see a test of 0.73 to be next, the lower time frames should show us a clear entry. Keep in mind that the move higher was an impulse and I will only trade the correction if it presents itself the way I like it.

I will be looking for a minor impulse lower which we might have seen after the RBNZ rate decision last night. Now I like to see a consolidation and sell the continuation. It is important to wait for structure to unfold itself. This way we stay out of bad trades.


Comment: Projection of at least 3 waves lower towards 0.73. Safest trade would be after the consolidation.
Comment: We did't see the consolidation followed by a bearish continuation yet. I understand harmonic patterns and know that they can work when using them properly, such a pattern might be ending in this zone for a possible reversal. However in my trading I demand a higher succesratio and a higher Risk/Reward. Therefore I only use them as indication and not for trading purposes. This is why I don't draw them or name them in my charts. The approach is the same as always, which might be conservative. I like to see an impulse of lesser degree lower (like a wave A or 1 of smaller degree), wait for the consolidation (wave B or 2) and sell the continuation lower. Although I see the AUDUSD at 0.80 soon I don't like to buy in this area because of the overextended structure we are seeing. Only a smaller time frame buy (1hr or lower) might present a last trend continuation trade. Fundamentally I like to see the correction in AUDUSD happening before FOMC later this week.

updates will follow

I have similar thoughts following the completion of a Butterfly/3 drives on the daily and have placed a short entry at 0.7550, which is a previous minor weekly support level from April 2015.

There is a possibility it may never reach there but I would like to see at least another test of the most recent high.

Overall signs are good; daily momentum indicators looking 'overbought', with bearish divergence on the H4 ; some signs of consolidation.

Good luck.
+1 Reply
Hi dude ! My view is that as per the theory of brakeout reversal shuld takeplace from 7659 for consolidation before the final lap towards 80 as you mentioned. Thanks !!
TimStuyts waterman
Thank you! I agree with that zone, this will be the target zone in case we see that bullish continuation trade on the 1 hr chart or lower.
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