Hey guys,
Australian dollar has gained a lot over the pasy days, you can see this from the chart above and you can also see that lately price has been ranging in a very tiny space. When you see impulsive move like this you would expect price not to retrace so much because of the strength disequilibrium. And that is what i think could happen next here: flags, pennants, wedges, these are all trend continuation patterns that appear when price has a strong trend. Therefore, if it will retrace a bit i'm going to enter long with stops below the lows and target1 at the retest of the highs. Target2 will be placed around 0,76.
Let's see how it plays out!
If you have questions or if you want to share your view, feel free to write below.
Otherwise, see you in the next chart!
Australian dollar has gained a lot over the pasy days, you can see this from the chart above and you can also see that lately price has been ranging in a very tiny space. When you see impulsive move like this you would expect price not to retrace so much because of the strength disequilibrium. And that is what i think could happen next here: flags, pennants, wedges, these are all trend continuation patterns that appear when price has a strong trend. Therefore, if it will retrace a bit i'm going to enter long with stops below the lows and target1 at the retest of the highs. Target2 will be placed around 0,76.
Let's see how it plays out!
If you have questions or if you want to share your view, feel free to write below.
Otherwise, see you in the next chart!
Trade active
Trade closed: target reached:
First target hit! Stops to breakeven.
Comment:
Stopped out at breakeven before rallying up to my second target level. Too bad!