Monday, 6 June 2011

AUD/USD trade on the short side

Hi my faithful readers :-)

I've been away from the markets a bit, really got sick / tired of charts. I'm back now, will try to make a difference this time.

I'm using my ichimoku strategy, it's slow, but it can be profitable. At the moment, it's all mixed up, and there is no clear pair to trade according to the strategy rules, maybe they're too strict.

Nevertheless, as you know I'm always trying something new and exploiting price action trading, I've decided to take this AUD/USD short position.

From the weekly chart you can really see overextension of the market, with 4th upward trend line, very steep and the last week candle, which shows a bit of market indecisiveness.

From the MACD point of view, it's clearly a bearish divergence at sight.

I've put a stop @ 1,0805 above recent week's high and profit target open.

If you take a look at the 4h chart, you can also see some bearish divergence on the MACD, and market unable to break above those previous highs - just touching them and obviously clear out the sellers stop orders.

That's it from me now! Take care!

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