I pieced out of the balance of our short AUDUSD position into repeated unsuccessful attempts to break through the 0.8930 support level. I can count this as a completed 5-wave impulse from the 0.9220 highs, so we need to be on the lookout for a 3 wave correction towards 0.9050. It is possible however that this morning's push to new lows was not wave 5 and actually just part of wave 4. If that turns out to be the case, then we are rallying in wave C of 4 which should carry us back towards the 0.9000 highs. Because I don't really feel like sitting through that, I closed out the trade. All in all it was a good trade and I am very encouraged by price dynamics.
EURUSD also exhibits an impulsive pattern that indicates a 3-wave reactionary rally is forth-coming. Notice the RSI divergence into 1.2800-area Fib zone support. Lastly, the S&P 15 min cash chart supports the theme that 5-wave impulse moves towards risk-OFF are now complete and a correction is coming due. Something interesting about that 15 min S&P chart is there a gap down in the beginning of each of impulse waves 1, 3, and 5. Markets could be in trouble here
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