Sunday 28 April 2013

AUDNZD Trend Reversal - Long

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Hi Traders

Warm welcome to all new fellow traders on the largest portal of K2A students after Adam Harris promotion to the blogs, so kind of him to take such an initiative to help us. So far 42 students are on board with us which is really cool.

AUD/NZD is setting up nicely for Trend Reversal to go long, its completing following check list for Trend Reversal.

1. Strong Level of Horizontal Support (1.2050)
2. RSI Divergence
3. Fib Extension Level (1.618 - 2.000)
4. Bullish Price Action (Low Test Bar)

Strong level of 1.2050 is on all charts (Monthly, Weekly & Daily) so its a very strong level of support which makes trend reversal quite likely.

PS: Unfortunately the trade size is 104 pips, so the prop traders on half a percent risk won't be able to take this trade.
 
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6 comments:

  1. Unknown29 April 2013 at 21:06

    where do you see your target for this trade? isn't there a strong level of resistance at 1.2174?

    ReplyDelete
  2. Unknown29 April 2013 at 21:41

    This comment has been removed by the author.

    ReplyDelete
  3. Anonymous30 April 2013 at 21:26

    Hi guys,
    what do you think of today's set up?
    Mira

    ReplyDelete
  4. Anonymous30 April 2013 at 21:29

    In last Weds' midweek market focus, Adam said that the downtrend is likely to continue and the NZD is stronger than the AUD which has generally been trading lately. The conditions may have changed since then.
    Mira

    ReplyDelete
  5. Sajid Khan Ghori1 May 2013 at 14:01

    @Cris
    Good point, the reason I didn't consider 1.2170 as potential resistance in this trade that its not a thin SR level, its actually 100 pips SR level from 1.2070 - 1.2170. If you scroll back on daily time frame you will find out that whenever price reached that area both levels worked in synchronisation either Support or Resistance, they didn't work against each other that's why on basis of Divergence on RSI, Stochastic & Momentum I analysed the potential of price reversal.

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  6. Sajid Khan Ghori1 May 2013 at 14:14

    @Mira
    In trading intrinsic value doesn't contain much importance as perceived value gives more clarity to the instrument concerned, so for me NZD strength over AUD doesn't make much difference than the actually performance of the currency in their respective pairs in current days.

    The reason this pair is ranging is that both pairs are facing resistance levels in their pairs with USD. Kiwi is facing resistance on 0.8575 (it seems its returning from there) & Aussie is facing resistance on 1.3080 on way back to long in weekly ranging channel.

    Yes I think NFP will give this pair a kick to set its momentum.

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