Swing Technicals- AUD/USD Short Opportunity at 1.0514

Monday, April 2, 2012, 5:49 PM

April 02, 2012

CURRENCYCURRENT BIASPOTENTIAL STRATEGY
EUR/USD (Medium Term)
Watch for a new opportunity to go long near the bullish trend line.
GBP/USD (Medium Term)
Bearish head and shoulders never fully developed; watch for a new opportunity to emerge.
USD/JPY (Medium Term)
Watch for a new opportunity to emerge.
USD/CHF (Medium Term)
Watch for a new opportunity to emerge.
USD/CAD (Medium Term)
Sell USD/CAD at 1.0073. Stop at 1.0111. Profit target at 1.0016.
AUD/USD (Medium Term)
Sell AUD/USD at 1.0514. Stop at 1.0544. Profit target at 1.0469.
NZD/USD (Medium Term)
Sell NZD/USD at 0.8280. Stop at 0.8320. Profit target at 0.8207.
EUR/USD (Swing Forecast)
Potential Strategy
Watch for a new opportunity to go long near the bullish trend line.
What is the trend?Up
What is this pattern?No pattern present - See all chart patterns
Why is this significant?There is no high probability pattern so we cannot place a trade.
What other indicators or Fib Levels support this thesis?No trade.
Reason for Strategy
The EUR/USD breached the bullish trend line on the 2hr Chart, but it quickly rallied back up. Therefore, the trend line could still be valid, but it isn't as strong as it once was. We will keep watching for bullish patterns that would allow us to go long near the trend line, but we will be more cautious that we would have been before the breach. Otherwise, another break below the trend line could push us closer to long term support near 1.2500.
Trade Invalidation
No trade.
Support & Resistance Levels
Resistance 3N/AN/A
Resistance 2N/AN/A
Resistance 1N/AN/A
Current Price1.3320
Support 1Bullish trend lineSee 2hr Chart
Support 2~1.2500Gartley support
Support 31.1876Point X on the Weekly Chart

Weekly Chart - Possible longer term support could emerge near 1.2500.
2hr Chart - Bullish trend line.
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