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Base of Wave 4 Triangle supported at 1.618 Fib level (projected from top of Wave 1);
Diversion between (D)-(E) Triangle leg and MACD histogram;
Slow Stochastics approaching Oversold;
Longer term target @3.618 Fib extension (1.6720) ... Risk / Reward > 1:3
Optional shorter term Target @ 2.618 Fib extension (1.61700)
Support Zone may suggest good chance to enter a Long Position of the Aussie against a (presently) weaker Yen.
Fibonacci tool left out, by mistake... my apologies!
Note that the Support / Resistance Zone coincides with the 1.68 Fibonacci Level;
Additionally, Wave V ends exactly at the 2.618 Fibonacci Level.
RBA recently reduced interest rate but AUD seems still strong.
USD rate hikes are not expected anytime soon... will USD data continue to show signs of weekness?
A new Elliot Wave Formation is possible on previous Resistance turned Support Zone;
200 Simple Moving Average line provides possible additional Support;
The Triangle suggests trend continuation... to be resumed after Price Action retracement.
After a long and healthy uptrend, Double-Top and Overbought Stochastics might indicate Temporary Uptrend Exhaustion;
For Countertrend traders, this might present a good potential opportunity window to short;
Recent Market Memory resistance levels suggest possibilities of...
The EURGBP has been downtrending strongly and has presently paused.
Before a trend continuation or trend reversal, Price Action may consolidate for a shorter or longer period.
Overbought Stochastics may suggest that Price Action will continue its Bearish momentum.
Risk Reward just under 1 : 2
Interesting potential of Wave ( v ) starting at conjunction of:
Test of 1.618 Fib level resistance
Bottom of Wave ( iv ) level reaching its limit at top of Wave ( i ) level
Bollinger Bands extreme being reached
Resistance of 50 Simple Moving Average (on the close)
...to complete Wave 5
Risk / Reward > 1 : 1.5
Wave 4 retracement may have found resistance at 2.618 Fib extension + previous resistance zone.
Crossover between 50 and 200 Simple Moving Averages may provide more conseravtive trigger confirmation.
If entered now (more aggressive entry) Risk / Reward > 1 : 2
Recent previous Price Action may form enough resistance for resuming previous strong downtrend.
Wave V will at least reach the base of Wave IV Triangle (if truncated)...
there's potential for more downside movement.
Market Indecision at Wave 4 Triangle, to be potentially followed by a breakout to the upside,
respecting and continuing the previous Bullish trend (weakened CAD, due to correlation with Bearish trend on Crude Oil).
Shorter term Risk/Reward ratio (based on Fibonacci + recent Price Action Highs) about 1 : 1.6
Longer term Risk/Reward ratio (based on Fibonacci...
1.51 level = previous Support, turned Resistance
Established downtrend -> Consolidation over 1.51 level -> possible Downtrend continuation
1.51 level broken to the downside
1.51 level being tested, at Resistance, with possible Price Action exhaustion (overbought)
Target -> Market Memory -> Low formed near 1.48258, from MAR to JUL 2013
Breakout projected from the Wave IV Triangle (Momentum Trade)
Elliot Wave metrics:
Wave III topped at the 1.618 Fib level;
Wave V (in the channel) expected to reach 0.9830 (2.618 level)
Trade valid until Price Action crosses Wave I level
Risk Reward > 7:1