How to trade this plan
1. Australia posted an employment change of -3.9K versus the forecast 15.0K with a participation rate of 64.7% versus the forecast 64.9%. Gov.
2. Risk off sentiment and poor data could result in weakness for Aussie and should we see Yen strength during the London session there could be some trading opportunities for this pair.
3. Should price fall from current resistance, wait for a pull back and an overbought M5, identify resistance and consider a short position.
4. Keep in mind that the target for the month was MS1 which we are currently at and have failed to break below.
5. Also keep in mind that we are currently below WS2 with strong support at DS1.
7. Ideally I would be bullish on this pair though given risk sentiment and poor data I may consider being short term short and consider some scalps should price fall into my trap and setup confirm bearish action.
8. Notice on the M5 chart I have identified a range and would only look at trading if price broke out of the range to the downside and then pulled back with an overbought M5 stochastic to role reversal resistance.
a. Please read Kate’s post on Forex Major Currencies Outlook everyday so you are up to date with the latest news. You can follow Kate here
b. Please be aware of risk events for the day by using the Forex.Today calendar
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