In terms of the AUD, it’s a major trend to the upside against the USD, JPY, and EUR but in the short term, it’s overbought and a pullback is likely…
All the setups have price that has moved 2 + standard deviations from the mean or more which we can see from the outer Bollinger Bands ( Orange lines) You will notice on the charts that price spikes outside of the bands either up or down tend to retrace back to the mid-Bollinger Band (Green line)…
Also, we have two indicators on the chart – the stochastic and the RSI which are also at extremes of overbought or oversold In terms of the trade setups there all looking to sell the AUD, and if triggered they should follow through quickly in the direction indicated.
The targets are our subjective view on how overbought or oversold the pair is. The trades are all contrary to the majority view and if we are correct in our analysis offer good potential profits against risk.
On the chart below volatility has increased recently and the outer Bollinger Bands have widened – we now have a full candle outside of the outer BB and view the AUD as a sell back within the outer BB and today’s low stop behind the 84.00 level.
On the chart below volatility has increased recently and the outer Bollinger Bands have widened – we now have a full candle outside of the outer BB – we have made a new daily low but we think the rally off the low shows exhaustion of selling in our view. We think the EUR is a buy back within the outer BB and above Friday’s close. Stop at least 50 pips below today’s low.
Again we have a full candle outside of the outer BB but we are off the high of the day and view the AUD as a sell back within the outer BB and through today’s low stop should be at least 50 pips behind today’s high.
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