AUD Weekly and 5-day pattern
There is a MAY high breakout and our expectation is that currencies will continue higher towards the June highs.
This week we have seen prices move down into the 5-Weekly 50% level and find support, and the expectation was that Tuesday would continue higher towards .8122
There is nothing to suggest that Wednesday will move down.
Price is trading above the 5-day 50% level and in theory should continue higher.
Simply don't trade longs below the 5-day 50% level.
The 3-day filter could provide 4 hour resistance (41 pip) down move, but it should remain above the 5-day 50% level and push towards .8122
Note:- never discount a higher Daily open sell down when any price pattern is in a 3-day 'sell' cycle.
AUD is currently in a 3-day sell cycle @ .8122, that's why limit any longs below the 5-day 50% level today.
Euro Weekly and 5-day pattern
Euro should continue higher on Wednesday towards 1.4268.
That can happen from the 5-day 50% level and continue higher (41 pip as first partial exit)
or there could be a push down into 1.3980 (3-day filter) and then continue higher.
A move down into the 3-day filter and then a higher move would provide an ideal set-up towards the 5-day highs.
Note:- Euro in 3-day sell cycle
don't trade longs below 1.3980
- All Daily forex reports are written before 11.00am Sydney Time, which is approximately Midnight GMT
