I am a bear on the Australian Dollar. Please take a look at my trade plan for opportunities to sell.
Price opened at MPP and is currently sitting above MM4 at 0.77500 psych level. MR2 is bulls’ monthly target. Price is also sitting at a major resistance level (between MM4 and MR2) where bulls are expected to take profit and bears enter the market with MPP as target. The 5 is above the 8 and 21 above the 55. Support identified at dynamic support level (21/55 EMAS), MR1/38.2 fib level/0.76500 mid psych level and 0.76000 psych level. It should also be noted that stochastic is overbought. I will wait for price to retrace to MR1 before its reaches its monthly target then I will look at lower time frame for opportunities to sell.
Price opened at WM3 and is currently sitting at WR1, which is a resistance level. Since bulls have been buying just above WPP, I will say that they are expected to take profit at WR2. MR2 is above WR2, MR1 below WPP and 0.76000 psych level below WS1. Support identified at dynamic support level (21/55 EMAS), WM3/61.8 fib level and above WPP. The 5 is above the 8 and the 21 above the 55. The stochastic is just below 80. I will wait for price to retrace to WPP/MR1 before it reaches its weekly target then look at smaller time frame for price reversal patterns before selling.
Price opened above DPP and has already met bulls’ daily target. It has formed a double top, which indicates a bearish price reversal. It could also mean that it is preparing for a retracement as indicated on higher time frames. This could be good for a short sell but since my goal is to sell high, I will be hesitant to sell at this point because price has not yet reached its weekly target. It should also be noted that MR2 is way above DR3 and MR1 coincides with DS2. Resistance identified at DR2/0.77500 mid psych level and support at dynamic support level (21/55 EMAS), DR1 and DM3. Stochastic is flat.