Looking at price action on the daily we see these three hops up, always between 1.272 and 1.414 Fib extension of the previous move up and then retracing about till about .618. We are just coming out of such a retracement down now.
With the AUD being weak as it is, we could see the same thing happening again and be looking for a move up into the red zone drawn in on the chart. First however we'll need to break above the 2.0 even handle.
We very recently completed the small cypher pattern and are currently retracing a litte downwards, but the general trend is up for this pair creating higher highs, higher lows.
Watch out ... this is a longer term trade !
Comments
danndc
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what do you think about a bounce at 0.618 retracement at 1.9150? and going to 2.01?
Nico.Muselle
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Hi Dan, a retracement into 1.9150 is very well possible as you say. It would align with the .618 and the A-point of that cypher pattern that we recently completed. As for the 2.01 level to rally to, I'm not sure how you see that. Could you elaborate a little more on that (preferrably with a chart) ? :)
danndc
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what do you think about this?
danndc
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i am in long aiming for 2.01/2.05. finger crossed
danndc
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do you think it is going up from here on, or it is going to fall a bit and then up?
i am thinking about entering long at 50% lower shadow retracement, what do you think?
Nico.Muselle
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Thanks for your reaction ! We are currently in the downwards retracement of that cypher pattern that completed. I'm not sure we will reach .618 but a 50% retracement seems possible to me as well. We'll have to look to the structure in place on the 4-hourly and hourly chart to see where is the support though.
IvanLabrie
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Agreed again!
I'm short gbpaud, and long gbpcad as a hedge...I want to ultimately long gbpaud but I'm not sure it's done retracing.
Good luck to us Nico ;)
Nico.Muselle
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Great ... let's see what next week brings ! As I always say, may the pips be with you ! :)