Thursday, May 24, 2012

Update on AUDUSD

This pair is very interesting. It plunge all the way south before going up to hit a obvious resistance. Didn't manage to get out at the bottom since it was an overnight trade. However, I still believe that price will further head south. Price bounced off 0.97830 with a pin bar coupled with a bearish engulfing pattern.

With the most reliable reversal pattern forming - head and shoulders, I believe that this trade will definitely possess a high risk to reward ratio yet have a high probability of success.

Expect $audusd to head south +80 pips if the head and shoulder is formed. Adding more shorts to my position.

Notice how similar $nzdusd and $audnsd are. You will also notice the head and shoulders forming in $nzdusd.

Building a large position that is ready to blast off anytime!

Out at +30 pips, reverse head and shoulders forming. Potential reversal sign

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