AUDUSD Daily Outlook for 23th December, 2013 (Monday)
Daily Chart
On Friday, After over 7 days of bearish days we finally have a good bullish candle reaction from a major support zone. Even though price bounced from the support zone formed in august, it concerns me that price did actually fall below August lows creating a new low for the year. This to me shows strong selling pressure. Next time when price comes to this area, i would expect this area not to hold and price to go lower
- Formed fresh new yearly lows on Thursday, and rebound on Friday
- Formed new yearly low
- Slightly broke support from august which to me shows strong selling pressure
- Next time when price comes to this area, i would expect this area not to hold and price to go lower
- Stochastics is turning up
- My sell zone / resistance area is at the 0.90 - 0.9050
Hourly Chart
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| 1 Hr Chart |
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| 4 Hr chart |
On Friday we had a good positive ending day which brings us back up trading in the 0.89's. I am expecting bullish momentum to be short lived towards the .90's and resuming the bearish momentum.
Indicators wise, on the hourly chart stochastics are turning, and on the 4hr slight divergence is possible.
- If we look at the 4 Hr chart, you can see we are in a descending Chanel
- At this stage i would go long on dips at around the pivot daily area (.890)
- Resistance area is at the .90 where we will go short
Outlook Trade opportunity
For Today i would buy dips at around the daily pivot area, (0.890) Looking for a 1:1 reward.
Its holiday season so not much action is expected.
We will also setup a short limit order at the 0.89594- 0.90 area
Risk Level - Medium
Tips -
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