Hello Forex Traders!
Aussie weakness hit the Forex market heavily yesterday as the currency value tumbled against all of the majors. The Kiwi joined its neighbor in the crash and the USD, EUR, and GBP gained hundreds of pips in the epic and dramatic fall of the 2 currencies.
Yesterday’s article mentioned the fact that the price of the AUDUSD currency pair was right at major resistance levels. The market surely responded in agreement as the AUDUSD fell 200 pips, EURAUD increased 300 pips, GBPAUD rose 300 pips, GBPNZD increased 450 pips (!), and EURNZD rose 400 pips so far (article written +/- 2am EST).
Our trade calls were aimed at catching the above mentioned price movements and our Forex trading room members and I did extremely well with those trades. You can see the summary video which mentioned the trade calls right here (GBPAUD was a trade from end of last week). It was posted via our WET twitter account (@winnersedgetrad) so make sure to follow us and look out for our tweets. The stats from those trades:
a) GBPNZD +160 pips for a 4:1 R:R
b) EURCAD +40 pips for a 2.5:1 R:R
c) USDCAD at breakeven and aiming for 2.5:1 R:R
d) GBPAUD +170 pips for a 1.7 R:R
e) GBPAUD +250 pips for a 2:1 R:R
f) AUDCHF +125 pips for a 1.7 R:R
Other opportunities yesterday taken by our trading room members:
g) AUDUSD 3:1 strike
h) EURAUD 3:1 strike
Not often can Forex traders make tons reward versus their risk due to 1 video summary or 1 trading room session. Make sure to join our Forex trading room as well. Not only will you learn a great Forex trading strategy, but most importantly you will learn how to read the structure of the Forex market. You will start to see the market as a Big Boy trader. And that is priceless.
Currently I am looking for the next wave of opportunities on the AUD and NZD currency pairs versus the EUR, GBP, and USD. When looking at the AUDUSD for instance, this particular currency pair has broken the major daily support level of 0.9060 and seems destined to fall to the next zone anywhere in between 0.85 and 0.87.
I will be capitalizing on the expected price movements by keeping my eye on corrections of both the 15 minute and 60 minute charts. Flags patterns are great continuation signals and are absolutely vital for understanding the market.
The AUDNZD is of course in a huge massive down trend. However, as of recently a triangle or descending wedge is being built on the daily chart. The triangle and wedge, just like flags, are great continuation patterns when the market is in a trending mode.
And a potential break of the triangle on the AUDNZD to the downside is a great with the trend continuation trade setup which certainly deservers anyone’s attention. The key support to crack is the 1.1265 price level, which is the daily support.
The key targets for this downside trade are the -0.272 at 1.1075 and the -0.618 at 1.0925. Be aware that on the weekly chart, major support bottoms dating back from 2003 to 2008 are in between the 1.0450 and 1.0650 area. Once price gets closer to that zone the bearishness might finally fade away in this fall which has lasted 5 (!) months and fell 1,500 pips.
Where do you think the AUDNZD trend stop? Remember that it is never wise to start picking tops and bottoms as the likelihood of success is against you. But we can try to pick tops and bottoms for the fun of it and see how is closest. Our method of measuring: the bounce back up must be at least 500 pips otherwise the down trend will be officially still intact.
Write down your number down below in the comment section! And we will compare those figures with each other. My estimate is 1.0430.
Thanks again for reading and sharing this article with others!!
Winner’s Edge Trading, as seen on: