I was BEAR on this pair but then things changed and I became a BULL . . . I'm now going to NEUTRAL awaiting a pull back to see the C&H develop or not as the case may be.
AUDUSD has been having a great run this month already and PRICE is just about to reach the December HIGH again, so a wee bit of caution as this coincides with the 100 and 200SMA daily (blue/green thicker line).
PRICE is longer term trending between .72 and .78 +/- 50 points or so and has formed a classic text book "Cup & Handle" pattern. For the pattern to play out, PRICE will need to pull back to the yellow box area but the stronger the move the less it has to pull back hence the leeway. Target is pretty much academic being double the depth of the CUP and an obvious target is a continuation up to .78 or thereabout.
Theoretically a BUY trade should only be taken on a break of the CUPS's rim but a positive 10/20 EMA would suffice as this is too obvious for everyone not to see and try and take advantage of.
Holding off now and waiting for the HANDLE to develop . . . for a month it was good, very good so no need to be greedy :)
NB. Some would argue it's an H&S pattern . . . what ever floats your boat with the targets and triggers remaining similar in both scenarios.
AUDUSD has been having a great run this month already and PRICE is just about to reach the December HIGH again, so a wee bit of caution as this coincides with the 100 and 200SMA daily (blue/green thicker line).
PRICE is longer term trending between .72 and .78 +/- 50 points or so and has formed a classic text book "Cup & Handle" pattern. For the pattern to play out, PRICE will need to pull back to the yellow box area but the stronger the move the less it has to pull back hence the leeway. Target is pretty much academic being double the depth of the CUP and an obvious target is a continuation up to .78 or thereabout.
Theoretically a BUY trade should only be taken on a break of the CUPS's rim but a positive 10/20 EMA would suffice as this is too obvious for everyone not to see and try and take advantage of.
Holding off now and waiting for the HANDLE to develop . . . for a month it was good, very good so no need to be greedy :)
NB. Some would argue it's an H&S pattern . . . what ever floats your boat with the targets and triggers remaining similar in both scenarios.
Comment:
That's a reverse H&S pattern I refer to in my NB.
Comment:
Omitted to put in the 5 Day AvDaRa boundaries but it's 80 points from H&L and PRICE has already hit the top boundary so another reason it's going to be difficult breaking further higher today and staying there.
Comment:
AUDUSD . . . top of cup line has now been hit after a shorter than expected pull back. If it is going to pull back further to the yellow box, it has to do it from here. The C&P pattern is still a valid one even with a short pull back but PRICE may well have a few second thoughts at this current level until a break out or rejection occurs.