The Ideal pattern to get back onto the downward trend is to a higher daily close and it aligns with the 5-day 50% level:- Sell higher daily open next day.
Until that happens it's wait and watch....
AUD Daily and 3-day pattern
I was hoping that currencies could swing up on Wednesday so they could provide and nice set-up to get back into the downtrend.
"For an intra-day swing trader, the ideal UP day would be a bounce of Wednesday's lows and then confirm it with price trading above the Brown filter.
Anyone else I would look for a re-test of the 5-day 50% level, which is part of an UP day, hopefully providing a higher 'Sell' pattern on Thursday using the 3-day filter once again."
Yesterday's report mentioned a test of Wednesday's low and a higher daily close, and then sell a higher daily open. Maybe Wednesday is slightly delayed in the pattern, and we do get price rising up on Thursday to provide the higher daily open on Friday.
Note: When you compare the other two spreads (Reports below), you can see price is travelling down into their August lows, whilst the AUD is now trading below it's August lows.
If Friday closes below the Fair value price @ .925, and below the August lows, then there is an expectation that the AUD over the next two months AUD could be making it's way back towards .86cents.
This will be confirmed from September 50% level after the complete month of August ends.
So at this stage any reversals up into the 3-day filters over the next few weeks should provide trading opportunities on the downside.
- All Daily forex reports are written before 9.00am Sydney Time, which is approximately 3 hours before Midnight GMT
