Monday 7 May 2012

EURAUD headed for a sell?

After over two months of a complex retracement, it finally looks like EURAUD is due for a ride down. It is after all still in a very long term downward trend if you look on the weekly, just in case you thought for a second: '...but it's making higher highs and higher lows!!'.

It looks like price action has lost steam in its retracement on the shorter term timeframes and frankly, the 12933 level (previous support) has now been tested as resistance, thanks to Friday's high test. This is a characteristic which you will see in any market as pure technical set-ups come into play.

The low of Friday’s high test serves as a nice and efficient place to get short in anticipation of the break of the phase two retracement and continuation to a lower low...



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5 comments:

  1. PiersC9 May 2012 at 01:58

    Hi Rob, I looked at this one myself, but am interested to know why you would target an entry at the break of the low of the high test, rather than using your 50 Fib entry? (Obviously on this occasion that would not have triggered but interested to know your thinking on 50 Fib vs. break of low - that's the bit I'm missing currently). Many thanks & loving the blog. Piers

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  2. RobColville9 May 2012 at 06:34

    Hey Piers, I took the break of the low of this one as i didnt see a reversal on a smaller timeframe... I only take 50 fibb entries IF i have such a reversal on a smaller timeframe

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    Replies
    1. PiersC9 May 2012 at 08:59

      I very much appreciate the reply, Rob - another piece of the puzzle has just dropped into place (I have been tending to look for reversals on lower TFs either way, so was missing that subtlety). I see more backtesting in my future lol. Piers

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  3. Hany15 May 2012 at 11:40

    Hi Rob, I am also in this trade from yesterday's pin bar. Entered at low of pin and stop loss at 1.2930. Looking good so far. Happy trading. Hany

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  4. John Cook15 May 2012 at 12:58

    I entered at low of HTB on 4th May. Very frustrating. Ranging sideways ever since.

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