Australia main index looks ready for further gains.
Technically,
A double bottom formation at the long term rising trend which was completed on breakout above the neckline at 5610.
Bullish divergence on Momentum
Breakout back above the two mean averages (50 and 200)
Major bullish pin bar on the weekly chart
Generally this is a guideline for the setup, you should choose whats suits you for entry and exit . For me, A pullback towards the neckline could be an opportunity to long. With a stop loss below 5480.00
My best regards Technician Subscribe to my trading portal thefxchannel.com
Comments
jangseohee
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test and go?
Technician
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Could be the case buddy, one possible scenario. I am biased towards this as well..
A-shot
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+1 from me on this
apol233
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Nice set up technician, I am entering now at the neckline (huge resistance @5600)
Thank you!
reteid2222
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Nice setup thank you!
A-shot
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AUD USD will also rise?
ValeriuV
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Hello, I belive if the rising confirm momentum after testing the neck line , this should afect all AUD pairs , but I would look to work on EUR/AUD and AUD/CAD which put up a less resistance and they have much reversal or break of trend chances.
I think the Tech wanted to inform anybody about a possible AUD reversal for the up side and we should use that information how we see fit.
I for one thank him for that, because i don't follow the indexes (althought I should).
P.S. In explanation should be double bottom :)
Technician
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Thanks for the correction mate. I am not sure how this will play-out with Aussie currency, as there is no dominant technical correlation.
ValeriuV
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Yes, you are probably wright about correlations. the way I see it it like pascal's principle of communicating vessels. The monetary mass is finite. So an increase in one currency has as result the decrease in other/others currency. Our job is to find which other currency is more likely to decrease when one increases. Your POV ( if confirmed ) that AUD will increase, helps me solve half of the problem. All I have to do is find him a week playmate ;)