Last week we took a look at the EURAUD (see related ideas below) & had a bearish structure trade on the radar. If you haven't seen that post make sure you take a look at it as this idea is a follow up on that one.
Although price has currently moved off of previous structure highs, it's done so in a way that has created new minor levels of structure as well. No need to be alarmed as normal & healthy market movements consist of an ebb and flow type of pattern & not just a large direction move. During this ebb & flow price has created new minor levels of structure that can be used as opportunities to hop on smaller extensions & that's what we're looking for here.
After spending the 1st half of the NY session retreating higher, we have now come to retest a previous level of structure & a hold of this level will offer a nice opportunity to involve yourself in a potential move lower while maintaining an excellent risk to reward profile.
It's going to be an interesting week in the markets with all of the FOMC members speaking and the first US Presidential debate tonight. I wish I can tell you what to expect but I honestly have no clue. If you have any guesses or insights please let me know in the comment box below as I'd love to hear.
hey Akil, will you be trading through all this news this week?
Akil_Stokes
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@Chinguyen, Yes with the exception of the non-farms on Friday
georgeglover21
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Hey Akil, how do you feel about the big bullish shooting star forming on the daily time frame?
Akil_Stokes
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@georgeglover21, Hey George, it doesn't concern me at the moment because the candle isn't complete so I can't place judgment until the close. If it does close how it currently is, that would not be a positive sign for continued shorts