AUDUSD Medium Term Outlook & Trade Setup - 28th November, 2014
Broke Yearly Lows, another low is vulnerable
Weekly Chart
nb - Weekly Candle has not complete, as this is taken on a start of a Friday Session
Comments-
We have broke yearly lows with good conviction, and this could be a start of another run to fresh lows we haven't seen since 2010. With the following technical factors pointing to the downside, We should not fight the trend.
- RSI hidden negative Divergence
- Just broke support / yearly low lows with a retest
- In a Downward channel yet to touch the bottom of it
- Next Major support on the Weekly is at around the 0.80 area
Daily Chart
(note friday candle has not closed)
Comments:
A little bit different on the Daily Time frame, where Major Support is actually been tested on Wednesday where it produced a Hammer Formation Candle, however on the following day we get a shooting star formation.
At this stage, it would be interested to see how Friday closes / end of week and month. But if you can imagine, unless something dramatic happens, the Monthly Candle will look ugly, facing further losses next month.
Outlook Trade opportunity
Heres my plan.For Day Traders / scalps -
#1 - at the current level, if it retest and produced confirming candle for longs, scalp to the long side.
#2 - If lows break, then take a breakout trade to the downside
Longer term, trading in the trend
If currently short could take partials and leave a small portion to ride it towards new lows.
If currently short could take partials and leave a small portion to ride it towards new lows.