After the FED Announcement on Friday it seems that the pair has made its gradual retracement back near the 50% of the 3rd wave after a final rally in favour of the Australian Dollar. We have a good resistance structure holding the pair from heading any higher in order for it to start its final 5th wave down towards the Feb lows. As you can see the 4th is more of a gradual retracement compared to its predecessor (The 2nd wave which was a sharp retracement)
I will probably wait for the RSI to hit its own trend resistance before going on short as it may just continue to rally a bit further just before RBA Rate Decision on Tuesday morning. The technicals and fundamentals of this trade seems to line up correctly and this may just be a great shorting opportunity so Im thinking of getting in a bit earlier with a good money management. Stay tuned.
I will probably wait for the RSI to hit its own trend resistance before going on short as it may just continue to rally a bit further just before RBA Rate Decision on Tuesday morning. The technicals and fundamentals of this trade seems to line up correctly and this may just be a great shorting opportunity so Im thinking of getting in a bit earlier with a good money management. Stay tuned.