AUDJPY Daily Outlook for 16th December, 2013 (Monday)
Daily Chart
"Ended the Week Lower"
Last week was a interesting one where we have fully retraced the previous week's gain. However good support is still at the 38.2% retrace of around 91.890. If we look at the indicators, and draw a trendline from the lows Friday's action has broke through that trendline.
It will be an interesting week ahead and if i base my analysis purely on the daily chart, and because of the indicator trendline broken to the downside, it seems it likes to break the support and find the next support at 91.10 (50% retrace). (BUT PLEASE READ MY FORECAST ON THE HOURLY CHART)
- In a downward channel
- Stochastics Trendline broken
Hourly Chart
On Friday It traded pretty much in a range from Thursdays Europe and NY Session. It will be interesting what Monday open will give us.
- Traded in range of Thursdays European and NY session
Below is a 4 hourly chart, where I have illustrated my forecast of this pair in the very near term (this week). If it goes to my forecast, then we are here for a harmonic trade of a bearish bat pattern.
- We are now on the C to D leg of the bat pattern
- My Bias is on Monday we will open higher, and on a retest and hold of monday's daily pivot we can go long so we can ride the wave up to D
Outlook Trade opportunity
I believe there is a good possibility we are creating a bearish bat, and we are on the C to D leg.#1 If market tests Daily S1, Go long take partial profit at Daily Pivot, R1 and so on
#2 If market open higher and Daily pivot holds, go long Take partial profit at R1
Note - good money management required for this trade if you want to ride it up, For intraday traders, you could probably just take profit at the first reached pivot (approx 40-50pips profit)
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