Sophia Todorova has a background in teaching and psychology, and as such relishes the idea of assisting new traders on their journey to Forex trading success. Technical Analysis is her passion. The charts speak, and she listens.
Ausdusd is currently testing the right shoulder of the daily head and shoulders formation that became invalidated when the pair burst above that level (.9890) In spite of this support, the price action is extremely bearish. There was an initial bounce to .9994 on the 4-hour timeframe in reaction to the daily support. This was however, quickly sold off. The current price action, along with the set of double tops on the weekly chart suggests to me that the pair could be headed to much lower levels. I initiated a short position and will be watching the daily chart for clues. A trendline break and retest could present an opportunity to add to shorts. Although I plan on scaling out of positions, my major target is the weekly breakout area at .9400 (see charts below)
If you are interested in trading this with me, it is a good idea to follow me on twitter, since I am able to give quick updates there, and you will be able to get them instantly.
When trading always use a stop loss and calculate the proper risk management for your account. This analysis aims at providing assistance to the forex trading community here at Winners Edge Trading, thereby helping them to make informed trading decisions.
You can also see my last article on Buy and Sell Zones here: http://winnersedgetrading.com/buy-and-sell-zones-beginner-trader-trading-opportunities/
Thanks for reading. Have a great week! 🙂
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