Last month I noticed a possible setup on the Aud/Usd in this post. Now the trade has setup and an entry point is here for the beginning of the year. The reason we have a short setup despite the excellent Australian economy and the strength of the aussie is because on the monthly chart we have a pull back and there is a shooting star and then a candle that has closed lower than the low of the previous candle. That is a short entry signal using Japanese candlestick trading.
Monthly Chart *note click on the chart to sign up for a free trial of the premium trading service.
The.382 support level on this is the .8070 level. So I will be entering a swing trade on this position on the open Sunday. I will have 3 areas where I will be looking to be taking profits. The first take profit level is at 100 pips the next take profit level will be at 250 pips and the 3rd take profit area will be at my target of .8070.
My stop loss is going to be very wide at .9353 which is just above the previous candle high.
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Let me know what you think of this trade and we will review next month. Happy Trading.
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