Traders Dynamic Index
DTF TDI squeeze spreading north
H4 TDI Market neutral but RSI turning south
BULLISH above 1.5883
BEARISH down to 1.6274
Sell down to 1.6274 area then look to BUY.
The TDI on the DTF of GBPAUD is very interesting currently. For the last two weeks the volatility bands have narrowed and and we have a classic squeeze. Over Thursday and Friday the RSI line has crossed the signal line to the north.
I'll be watching this pair closely as any sign of the volatility lines widening and the RSI pushing north could signal a major move...
GBPAUD remain in the flag shown and stays inside a channel that runs from 1.6000 area to 1.6271. A break either side of this channel would be significant.
With direction unclear best plan is to trade of support levels.
LONG from 1.6036
SHORT from 1.6259.
here you can see a bat formation near to the completion D point. However, my analysis started from higher timeframe, where i've indentified the strong daily support sitting at 1,60 even handle number. The harmonic formation ends up right there and therefore i think it could be a nice opportunity to go long.
Stops below X, targets at the .382 and .618...
Price recently broke to the downside to test 1.599, causing a double bottom on the daily timeframe, and formed a very strong bullish candle.
Price is back within the range and testing the 61.8% Fib
I consider price to be at an interesting level. Should this area hold, I will look to hop on to the trend down, looking for new lows.
If there is a breakout higher, I...
Day chart: Yesterday's big red candle indicates short bias on this pair. Price may keep going down to test 1.6800 support.
4 Hour chart: Wait for a consolidation to see if there is a reasonable stop loss when price breaks yesterday's low.
30 minute chart shows a nice bullish cypher setting up. There's a couple of bearish inside bars at the top of the formation.
RSI is over brought and heading down.
Pattern is inline with the support and resistance wedge that has formed.