AUDUSD - Why its important to have the big picture in mind
***Why do you need to have an idea on the bigger picture***
I've seen quite some trade ideas between my last Aussie chart and now. Some calling longs, some calling to stay out.. I must admit, at times even I got a bit confused, but this chart has kept me on the right side of the trade. For example, the retracement to 0.93065 was picture perfect. (It was a high of previous NFP which was waiting to be picked).
So the bias is still to the downside and short positions should be closed near 0.912 (there is some room to the downside but let's not get too greedy). Lot of US data today and tomorrow (starting with Aussie PPI early hours).
We're looking for a drop to 0.91023 - 0.91323... (therefore 0.912 because its round and sounds like a nice number between those two)
At current levels, there should be no reasons for RBA to take a dovish stand (If price hovers below 0.93 levels). If May's labour data for Aussie also comes out bullish, then we can head back to 0.95 levels. There's something more interesting happening at 0.95, which i'll update later on.
***Importance of referencing other pairs***
Check the linked EURAUD chart, which shows that a bullish move is required for EURAUD to confirm its bias to the downside. A retracement to 1.526 level or something. This points to an interim weakness in the Aussie to achieve that which coincides with the weakness in AUDUSD to retrace to NFP & Aussie labour data highs couple of months ago.
Now combine AUDUSD, EURAUD and we can get a sense of direction EURUSD must take for the analysis to come true, which in turn can help you understand if any sudden moves opposite to the trade is valid or just a temp. glitch.
Current risks: Refer to today's fundamentals from the US.
Next update: Post NFP
Good luck!!
I've seen quite some trade ideas between my last Aussie chart and now. Some calling longs, some calling to stay out.. I must admit, at times even I got a bit confused, but this chart has kept me on the right side of the trade. For example, the retracement to 0.93065 was picture perfect. (It was a high of previous NFP which was waiting to be picked).
So the bias is still to the downside and short positions should be closed near 0.912 (there is some room to the downside but let's not get too greedy). Lot of US data today and tomorrow (starting with Aussie PPI early hours).
We're looking for a drop to 0.91023 - 0.91323... (therefore 0.912 because its round and sounds like a nice number between those two)
At current levels, there should be no reasons for RBA to take a dovish stand (If price hovers below 0.93 levels). If May's labour data for Aussie also comes out bullish, then we can head back to 0.95 levels. There's something more interesting happening at 0.95, which i'll update later on.
***Importance of referencing other pairs***
Check the linked EURAUD chart, which shows that a bullish move is required for EURAUD to confirm its bias to the downside. A retracement to 1.526 level or something. This points to an interim weakness in the Aussie to achieve that which coincides with the weakness in AUDUSD to retrace to NFP & Aussie labour data highs couple of months ago.
Now combine AUDUSD, EURAUD and we can get a sense of direction EURUSD must take for the analysis to come true, which in turn can help you understand if any sudden moves opposite to the trade is valid or just a temp. glitch.
Current risks: Refer to today's fundamentals from the US.
Next update: Post NFP
Good luck!!
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