Normally when price hits these highs I would look for a reversal back down, as was the case in March this year.
However, in the Daily chart we have a breakout of the Weekly highs, which often will support price for the next few days until the end of the week.... "
Yesterday's Report
AUD Daily and 3-day pattern
AUD rotated back down into the 5-day 50% level on Wednesday.
Even though I have a view that the AUD 'could' reverse down from Monday's highs (previous report), there is still the probability that price can remain above the Weekly highs for the rest of this week because of the 'breakout'.
Today:- In that case, use the 3-day filter to trade any bounce off the 5-day 50% level on Thursday back towards Thursday's highs. (probability pattern)
If price is pushing down from the filter and below the 5-day 50% level, and also below the Weekly highs, then there is a potential reversal back into the Weekly 50% level, as it moves down towards Thursday's lows... (non probability pattern, but potential pattern to follow)
Note: A 'probability pattern' is based on the 3-day pattern that coincides with the higher timeframe 'Model.
A potential pattern (non probability) is using the exact same levels, but is 'thrusting' in the opposite direction, which traders can still profit by, or minimise risk by not trading against the current daily trend.
- All Daily forex reports are written before 9.00am Sydney Time, which is approximately 3 hours before Midnight GMT
