AUDUSD Daily outlook for 6th December, 2013
Daily Chart - Still looks very bearish
We recovered around 50% of the drop from the previous day
At the time of writing, its one hour before the daily candle closes (NY time) - it is trying to close back above 0.90600
Should take note of the Divergence happening on stochastics
Yesterday It retested the lows at 0.90 and bounced back and if looking at a 4hr chart it shows a ‘bullish engulfing candle’ which brings is back up from previous resistance which now support (clinging on)
Holding desperately at 0.9060 level
If looking at daily pivot level, it is showing good signs it can hold at late hours of the day
Outlook Trade opportunity–
At this level trading is high risk because the current level is messy. If 0.9060 holds with good conviction, will go long up to 0.90870 (61.8% retrace).
- Going against the trend, however few indicators confirming
- Divergence in daily
- zoom into 4hr chart we can see a bullish engulfing candle, followed by a doji
*Please take note the 50% / 0.9070 retrace level is another barrier to pass.
*IN the Hourly chart, we are in the ichikumo clouds so risk is higher, however to trade today, will zoom into 15min / 30min
Risk Level – High
