23 Jan 2014
Flash: Why not to trade AUD/USD now - FXStreet
FXstreet.com (Barcelona) - Goncalo Moreira CMT, FXStreet Technical Analyst notes that although not all of the current positions in our CTP table are fresh from today, he believes that they still provide a liquidity map good enough to orient our trading decisions.
Key Quotes
“The pair is being priced at 0.8792 almost where it started the week having tested the 0.8885 yesterday. Notice the mix of new sell orders with some older short-term take-profits, resulting in an imbalance in the supply and demand equation.”
“We could expect a breakout of this conflicting zone at 0.8820 into a new prospective micro-consolidation around 0.8915. Two fresh sell limits are waiting here for execution.”
“Sustaining a close above this supply area could originate a fast directional move with danger of overshooting above the January 13th high. Looking South there is no meaningful cluster of orders. Traders are using old supports from the 2010 charts as targets.”
“In the previous report, focused on the EUR/USD, we advised of a possible erosion to the 1.3515 level. The below charts illustrates not only the pace of the fall we we anticipated to be fast, but also the exactitude of the expected demand levels.”
“For the next days, the recommendation is to maintain a degree of neutrality in the AUD/USD and enter a sell limit at 0.8915 with a Stop Loss at 0.8935, taking partial profits at 0.8885. Move stop to break even and aim for the next target at 0.8830.“
Key Quotes
“The pair is being priced at 0.8792 almost where it started the week having tested the 0.8885 yesterday. Notice the mix of new sell orders with some older short-term take-profits, resulting in an imbalance in the supply and demand equation.”
“We could expect a breakout of this conflicting zone at 0.8820 into a new prospective micro-consolidation around 0.8915. Two fresh sell limits are waiting here for execution.”
“Sustaining a close above this supply area could originate a fast directional move with danger of overshooting above the January 13th high. Looking South there is no meaningful cluster of orders. Traders are using old supports from the 2010 charts as targets.”
“In the previous report, focused on the EUR/USD, we advised of a possible erosion to the 1.3515 level. The below charts illustrates not only the pace of the fall we we anticipated to be fast, but also the exactitude of the expected demand levels.”
“For the next days, the recommendation is to maintain a degree of neutrality in the AUD/USD and enter a sell limit at 0.8915 with a Stop Loss at 0.8935, taking partial profits at 0.8885. Move stop to break even and aim for the next target at 0.8830.“