AUD,NZD/FXWW News/Technical Analysis/Trade Ideas

AUD/USD: Technical contrarian trade

  • The recent fall has stalled thus far at a 76.4% retracement level near .9060;
  • The short-term charts are trying to form a basing pattern.

I’m not overly convinced by this trade but the risk reward is good; buy at current levels near .9110 with a stop-loss below .9050 looking for a move to re-test .9250.

  1. Morning Sean. On the same note , my AUDNZD trade survived ( barely ) and is now back at b/e .A further advance tomorrow would create a nice looking weekly candle. Risk/reward is great on this one and I’m still contemplating a rally. If Aussie looks like basing against usd , kiwi is on the brink to collapse , decent looking H&S on the dailies. My odds look good 🙂

  2. You might be on a winner there Adrian. If it can establish itself back above 1.12 then a sharp short-covering spike would certainly not surprise. Wait and see what happens over next few hours, might even be worth increasing once you get a bit of profit on the trade?

  3. Increasing is not a bad idea especially since the time frame is on the large side. Still waiting on my cable bet , if nothing happens soon i’m folding it , it’s gonna be bitter but i’ll live with it. And speaking of contrarian views , I remember you had a view on EURJPY , looking at it now it stands at a weekly resistance and 140 might be a tough nut to crack ?

  4. Too hard Adrian, EUR and JPY must be the 2 hardest currencies to pick at the moment. I think the next big tradingh opp in this pair will be to sell it somewhere, but where and when?? That’s always the tough question.

  5. Hi Sean,

    AUD is so weak but that’s not the end of world. A bearish shooting star has formed for the EURAUD pair at around 1.5. Similarly, a bullish hammer for AUDCHF.

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