I would like to suggest 2 AUD swing trades, based on the Daily charts.
- AUDUSD Short Trade
Below is the daily chart of AUDUSD. The trend is obviously down. The last 2 candles are blocked by a) 55EMA, b) Role Reversal resistance.
Since the candle touched 55EMA, the price may not make Lower Low. But still, I am expecting to go down to MS1 (0.6956).
However, looking at H4 chart, this is very bullish – making series of HH and HL, riding 21EMA. So don’t blindly sell this pair. The price may make another HH and HL though I see Bearish divergence on H4 chart. Please remember my basic plan was created on the Daily chart (Above). So it may take a long time to be ready. I am expecting that sometime this week, AUDUSD will make Lower Low on H4 chart. If that happens, then get ready and wait for Lower High to sell!
2nd AUD pair for Swing Trade is EURAUD.
Again, take a look at the Daily chart. This is still the up trend, and the Stochastic is reaching down to 25% level. The last 3 candles are supported by MPP. Thus I am expecting this pair to go up sometime soon.
Looking at H4 chart, the price has been in the range bound. So I came up with 3 scenario to buy this pair.
Below is “Long Scenario 1”, to buy from the current level – Bottom of the range & Double buttom. I wouldn’t call it crazy to buy from this level, though we can call it a “betting”. The reason why I think this is possible is… Stop can be small – just below the bottom of the range.
2nd Long entry point is… just wait for HH, and Long from the following HL.
The last entry is the most conservative one, to wait until the break of the ceiling, and long from there.
In both pairs, I am expecting weaker AUD.
Again, these setups are based on the Daily charts. So it may take a long time, or… AUD may keep stronger! 🙂
But I just hope you get the hint of Swing trade, and its setup from this post.
YJ Baik – Forex.Today @ Kyoto