Good Morning Traders,
So today i decided to analyze AC,it's in a good position and could do interesting movements in the following weeks.
The bias for this pair is Short for the long term. There's a long bearish drop that comes from April last year and it seems to be headed to the first stop (0.64095) which is an identified support/reversal area. According to the Stochastic indicator, probably, won't be a reserval area, because we do not have an Oversold indicator which means, it can drop a little more than what already as dropped.
The last time the pair was near the 0.64095, we saw an instituional movement to trick retail traders into thinking it was dropping further. This time of movement can occur again to trick us into open Short Positions and then see a huge reversal which will trigger our Stop Loss. To avoid being caught in this time of movement, you should establish a pending order to open if the next candles drops further than the end of the previous candle.
If the price breaks the 0.64095, the next target could be near the 0.62000 which was also an area that the pair rejected several times but it could also drop in the direction of 0.57150 and respect that area. The 0.57150 is the LL of recent years, and it could mean something bad to the AUD but we never now. These are the identified levels in this pair and we should be aware of them and do our analyzes based on them and candle patterns as well.
Do not trade only based of the information you have and obtain from the charts, always do your research and gather the most information possible, in order to be the 100% of the position you open
So today i decided to analyze AC,it's in a good position and could do interesting movements in the following weeks.
The bias for this pair is Short for the long term. There's a long bearish drop that comes from April last year and it seems to be headed to the first stop (0.64095) which is an identified support/reversal area. According to the Stochastic indicator, probably, won't be a reserval area, because we do not have an Oversold indicator which means, it can drop a little more than what already as dropped.
The last time the pair was near the 0.64095, we saw an instituional movement to trick retail traders into thinking it was dropping further. This time of movement can occur again to trick us into open Short Positions and then see a huge reversal which will trigger our Stop Loss. To avoid being caught in this time of movement, you should establish a pending order to open if the next candles drops further than the end of the previous candle.
If the price breaks the 0.64095, the next target could be near the 0.62000 which was also an area that the pair rejected several times but it could also drop in the direction of 0.57150 and respect that area. The 0.57150 is the LL of recent years, and it could mean something bad to the AUD but we never now. These are the identified levels in this pair and we should be aware of them and do our analyzes based on them and candle patterns as well.
Do not trade only based of the information you have and obtain from the charts, always do your research and gather the most information possible, in order to be the 100% of the position you open