I have orders set to scale into AUD/USD from 0.8960 through 0.9240. There's a big honking post on my journal about the analysis I did, but that's because I'm still trying to settle on a method I'm comfortable with. Anyway, I won't reproduce the thing here, so this is the Reader's Digest condensed version:
1. Fundamentals look good, recent releases support the pair and the interest rate differential is long.
2. The long term trend is up, with the pull back we saw last week just bringing the pair to a common support area between the 30 and 50 SMA on the daily charts.
3. The pair is in an ascending right triangle on the lower TF charts.
4. There was a bullish hidden divergence on the RSI(8) on the daily chart. The RSI went to lower lows from the October low of 0.8750 to the recent low of 0.8750, but this was not confirmed by price action which did not make lower lows. It has created a double bottom.
5. The pair has just broken a strong confluence of resistance area around 0.8940.
6. Now that my first order is filled and I've posted this, the pair will of course go to 0.000000000001 now, LOL.
1. Fundamentals look good, recent releases support the pair and the interest rate differential is long.
2. The long term trend is up, with the pull back we saw last week just bringing the pair to a common support area between the 30 and 50 SMA on the daily charts.
3. The pair is in an ascending right triangle on the lower TF charts.
4. There was a bullish hidden divergence on the RSI(8) on the daily chart. The RSI went to lower lows from the October low of 0.8750 to the recent low of 0.8750, but this was not confirmed by price action which did not make lower lows. It has created a double bottom.
5. The pair has just broken a strong confluence of resistance area around 0.8940.
6. Now that my first order is filled and I've posted this, the pair will of course go to 0.000000000001 now, LOL.