AUD Weekly and 5-day patternAUD moving back down into the August BP and Weekly 50% levels.
Thursday's 5-day 50% level resistance.
Euro Weekly and 5-day pattern
I was expecting the 5-day 50% level to push the euro down into Wednesday's lows, but I wasn't expecting the break of the 5-day lows.
Price was trading above the Weekly 50% level, therefore my view was for Euro to remain above support (Wednesday's lows)
There is now an expectation for price to continue down into the Weekly lows:- higher Weekly open and lower Weekly close.
Weekly lows match the August balance point
The best trade is going to be hopefully below Thursday 50% level and the Weekly 50% level, with the expectation that price will continue down into a lower low on Friday near the Monthly 50% levels (Weekly lows)
Normally I would focus on another 2 day down move from a 5-day 50% level towards the Weekly lows @ 1.3878
So stops need to be above the Weekly 50% level.
If the Euro hits 1.3878 before the set-up plays out, then we need to wait and look for the next set-up from next week.
- All Daily forex reports are written before11.00am Sydney Time, which is approximately Midnight GMT
