AUD Weekly and 5-day patternYesterday I was looking for a move back into the 5-day 50% level, which matched the Weekly 50% level and short trade down...
This lasted the usual 41 pip reversal, but then it reversed back towards the 3-day filter.
We have a couple of patterns at play on Wednesday and both are as valid as each other....
1. Price is still above Monthly balance point, and we have a potential Weekly HOOK pattern based on Tuesday's trading.
Weekly HOOK:- moves down on Monday but reverses up and closes above the Weekly 50% level and 5-day 50% level.
If price is going to HOOK and continue higher, then it needs to be trading above the 3-day filter:- (4 hour close) towards .8120
2. higher Daily close, sell down from the Weekly 50% level and pushed down by the 5-day 50% level.
In conclusion:- it's a each way bet
Trade on the side of the 5-day 50% level.....
Euro Weekly and 5-day pattern
I certainly wasn't expecting the Rally on the Euro, even though there was support around the monthly balance point.
I personally like to trade longs using the 3-day filter as support:- RED
In the Euro we have two plays on Wednesday.
At this stage the view is to move towards the 3-week highs @ 1.4302 by Friday
We have a 5-day breakout on Tuesday, therefore there is the expectation that price should continue towards Wednesday's highs.
However, Tuesday is breaking the 3-day cycle (White)
When that happens often price stalls for 2-days and then continues higher on the 3rd day.
Basically I would like to see the Euro move back down towards the 3-day filter (Red) over the next 1-2 days to trade longs towards a higher friday close.
Wednesday:- trade on the side of the Yellow Filter.
- All Daily forex reports are written before 11.00am Sydney Time, which is approximately Midnight GMT
