RedHotCandlestick
Long

EUR/AUD Looking At Direction Change

FX:EURAUD   Euro / Australian Dollar
Dear Community,

today we are presenting you a more aggressive Ichimoku Kinko Hyo Approach - combined with simple price action and support levels.

A Picture is Wort A Thousand Words
In this case the picture is the chart and by looking at it it becomes fairly clear what the idea behind this long trade is. The support level at ~1.4480/80 stands strong and sends the pair for the third time direction north after testing it.

Now, from an Ichimoku perspective this trade is truly premature. No signals at all but looking back we'll see that teh indicator was lagging quite a bit when it came to huge reversal moves. The reasons are two different:

1) The Ichimoku is a trend indicator ONLY. It shows us momentum, direction and potential changes in trends.
2) The Ichimoku isn't the best indicator to be use in volatile markets. EUR/AUD             unfortunately is one of such, so not the best choice.

However, it is still useful to us as we can determine changes in momentum and therefore portential changes in directions. In this case our approach is very simple and it won't get much more simple than that:

a) We have a support line
b) The price tests the support line and didn't break it
c) The bearish momentum gets weaker

Based on these three facts we have opened a long position with a conservative stop at 1.4330. The first target we are looking at is 1.5596 - the primary target 1.6600.

Don't expect any of these targets to be reached within days! This trade might be a matter of weeks but the chance/risk ratio is just smashing!
Comment: Note: The current development doesn't look too great, however, we still hold onto it till next week. Wait and see.
Comment: Support level is still active, so is the trade!
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