Wednesday, September 21, 2016

Audusd: The Return of The Bears?

Aussie was one of the 9 currency pairs on our Watchlist for the week and we were expecting the correction upside to continue to 0.76 price level.

I actually was expecting price going higher to 0.762.

Price is now showing a sign that the correction upside is over and we may see it resuming the bearish trend which started almost two weeks ago.



We can see a double zigzag corrective pattern as shown in the chart above.

A break below the 'red' rising trendline could trigger a a new bearish journey which could be a much longer one that the previous.

This would be a 'mouth-watering' trade with a big R/R if price moves as expected after the break-down.

This could be one of the reasons why we decide to trade using Elliott wave theory (think of a wave iii in the making)

No comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...