AUD Weekly and 5-day pattern…
AUD continues higher as is consolidates above the MAY highs, which is also above the Yearly 50% level.
At this stage the bias is to continue higher, but I’ll get a better idea once this Friday closes.
Friday:- there is a higher daily open and also trading around the 3-day filter.
This is often used as a ‘shorting’ level, but on Friday that might not occur.
At best a 4-hour reversal pattern:- random length…
However I’ll also know that Friday can close higher based on the breakout of MAY highs.
Euro Weekly and 5-day pattern
Euro continues with a higher Weekly close, as it head back towards the Yearly 50% level @ 1.4094
Breakout of the MAY highs.
The previous 2 days provided robust long set-ups to trade upwards, enough to make decent returns because they are probability patterns:- 3-day filter Support and higher Daily closes.
We have seen this countless of times.
We have also seen countless of times, monthly highs resist price, but if price isn’t below the 3-day filter and there is a 5-day breakout from Wednesday, then more often than not price will continue with the breakout and head towards the next 5-day highs.
I can’t blame the model or the market if I'm shorting the MAY highs if lesser timeframes and filters have broken out the previous day.
What about Tuesday and Wednesday buying the 3-day filter?
How much money did we have the potential to make then?
Answer:- a lot if you let the trade run into the 5-day highs.
Friday:- Higher Daily open and 3-day filter
Yes the Euro can reverse down for a 4 hour period
It could even reverse all the way back into the 5-day 50% level.
But there is also a larger Trend in play that is trying to head towards the Yearly 50% level.
So it might not and we have a higher Friday close
Therefore Trade accordingly and use tight money management.
Exact levels shown for current day aren't confirmed until midnight GMT
Friday:- Higher Daily open and 3-day filter
Yes the Euro can reverse down for a 4 hour period
It could even reverse all the way back into the 5-day 50% level.
But there is also a larger Trend in play that is trying to head towards the Yearly 50% level.
So it might not and we have a higher Friday close
Therefore Trade accordingly and use tight money management.
- All Daily forex reports are written before 11.00am Sydney Time, which is approximately Midnight GMT
