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Free Profitable Forex NewsletterÂ
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Hey! This is Philip with this week's trade idea of the Free Profitable Forex Newsletter!
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Summer is here, and the Forex market is entering the usual lull for this time of the year. What'sWhat's not very usual is that this time we've already been trading in ranges for some time as a result of central bank interventions in the markets.
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With that said, we continue to look mainly for tactical trading opportunities as any longer-term direction in currencies is practically non-existent. Our other tactical USDCHF and EURGBP trades from the past couple of weeks are open and in progress. Support held on USDCHF and EURGBP moved in profit.
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Break of Support Trendline to Provide Bearish Opportunities on AUDUSD
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This week, we are looking at the AUDUSD pair, which is reaching an interesting juncture on the charts that warns a bearish technical breakdown may soon unfold here. If support breaks here, there will be significant potential for the down move, with minimum target toward the 0.6700 area.
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The initial support that AUDUSD needs to crack now is around the 0.6900 round number level (see daily chart below). Once this occurs, the road toward the 0.6700 will be cleared, opening up a 200 pips potential for short trades.
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0.6700 is a big support area due to the 55-daily, 200-daily, and the 55-weekly moving averages and the 55 weekly moving average. So, some reaction here is most likely if/when the price reaches it. If the bearish momentum is strong, AUDUSD may fall even toward 0.65, but we use 0.67 as the first target for this trade idea.
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The shallowness of this last bullish leg suggests bullish momentum is quickly waning. This is confirmed by momentum indicators such as the RSI and Stochastic.Â
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Furthermore, the shallow price action is clearly confined within a channel formation. Such situations can often produce excellent trading opportunities once the technical levels are broken.
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- Wait for a breakout below the 0.69 support;
- Preferably, look for confirmation of the breakout. A break-retest-continuation is a great way to confirm a breakout.
Stop loss:
- Place the stop above the entry pattern or the last swing high before the breakout
- 0.70 is the line in the sand in any case; AUDUSD should not move above it if this trade is going to work as anticipated
Targets:
- 1st - The 0.67 area as described above;
- 2nd - 0.65 area
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Trade signals from the past week
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- July 3 - Long USDCHF from 0.9460 on the successful test of support (in progress as explained above)
- July 8 – Short EURGBP from 0.8990 (in progress) – trade idea sent on July 03
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TOTAL: 0 pips in the past week
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TOTAL: +2725Â pips profit since October 1, 2018
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If you have any questions or feedback, don't hesitate to reply to this email.
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Thank you!
High Risk Warning: Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.
Any opinions, news, research, predictions, analyses, prices or other information contained in this newsletter is provided as general market commentary and does not constitute investment advice. FX Trading Revolution will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
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