AUD Weekly and 3-day Patten
AUD trading below the monthly 50% level and below all timeframe 50% levels.
If the trend is going to continue down then the blue filter @ 6525 is going to define whether price moves down into Thursday’s lows….
Or moves back towards the 3-day filter.
The 3-day filter is resistance…
However, if the Monthly 50% level is going to be a valid support zone even though price is trading below it at this stage, then the 3-day filter needs to breakout @ 6635.
If that’s going to happen it’s more than likely to happen during the US timezone.
The Trend is down and expectation is to continue down, but the 3-day filters are the first sign that a reversal pattern is taking place.
Above 6635 and the view is price is heading back towards the Weekly 50% level.
Euro Weekly and 3-day pattern.
Trend is down and remains down.
I would only trade longs on the Euro if there is a daily Hook pattern over the Weekly 50% level.
Therefore I’d wait for that to happen and then use the Weekly 50% level as support the next day.
A 240 min bar closure above the 3-day filter, could give the first hint that an UP day is going to happen.
GBP Weekly and 3-day pattern
Bearish on GBP.
Text book Patten has continue down into Wednesday’s from Tuesday’s breakout.
Normally when the trend continues down it often re-tests the break (Tuesday) before the overall trend continues lower.
If that is the case then the trend guide on Thursday should by defined by the blue filter @ 1.4415.
Below and it’s pushing down into Thursday’s lows.
Above could see the move back towards the 5-day 50% level (higher daily close).
I don’t know when price will be above 1.4415, but it could be capped below this level until the US timezone and if currencies are going higher then traders should use the 3-day filters (blue or Yellow) as trend guides
