Monday, June 4, 2012

AUDJPY Analysis 5 June 2012

This pair has been on a clear decline but what makes trading this pair difficult is identifying a good entry point. You wouldn't want to be shorting this pair in a consolidation with the high daily swaps that you would incur.

In H4, we see that audjpy is on a clear downtrend. Let's zoom in to find a low risk entry that will likely blast off in our favour.

Price appears to be bouncing off fibonaci 50%, which is also close to a confluence zone mark in light aqua blue seen above (between 76.744 and 76.573).

The current candlestick looks like a evening star which signifies that bears are in control. But do wait for the candle to close before considering anything.

In accordance to my trade setup, I'm looking at price to close below 76.09 before taking a short position.

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