Currently learning how to forex trade again, so before I take it serious I am publishing my technique and seeing if they work.
So for this trade I had a daily support and a 4 hour support. Plus a potential double bottom. Being a newbie, I would enter this trade with my 2 confirmations, I have a psychological resistance, which I hope it breaks for it to go up to...
Could AUD drop? I know small time frame analysis but on the 4 hour chart it could look like a potential M forming to go down and it is near a psychological level. It will be a session confirmation soon.
AUDUSD for me was a downward trend. Could have taken 2 trades from this.
1st trade from 0.6100 long and then a short from the 50% Fib Retracement. Yes, not all trades can be perfectly seen like this but today's one was quite nice.
Reason for the short, which it looks like I am late for the party, is because it is midweek reversal time (fingers crossed). On the 1 hour it could be a W formation or a start of a M formation. On the daily chart you will see 3 bullish candles, with todays looking like a pin bar.
Long from 0.6600
Why? Because this is the lowest it has been for a while and has been resisting for this level for the passed couple of days. Yes, long term it could spiral downwards, but no hard in getting a bit of a reversal.
Psychological zone too, people like whole numbers.
NZDCHF Potential Long. This zone at 0.6190 seems to be a general support zone for years now. Hoping this works in my favour for a long.
I know the markets have just opened, but I like the trade so why not.