AUD/USD 15th October 2010 recap

AUD monthly and daily range

AUD currently stalled around the October highs @ 9979, as it completes the break and extend pattern.

My view is that the AUD will try and make it's way down towards the November 50% levels during the 3rd or 4th Week of this month, and then make higher highs in the first Quarter of 2011 (break parity)

Thursday:- I would have preferred Thursday to have moved down further and be trading around

.9840 (#3) than where it is now.

Trend guide for the next 12 hours as shown in the right chart

@ .9945/54.

 

As mentioned two days ago… “at this stage I



would focus on 41 to 85 pip ranges”

What we can see in the bottom chart is a 85 pip reversal from the highs in the left chart on Thursday, but as the trend is reversing down we have.... (right chart)

41 pip spiral tops occurring providing traders with amply opportunities of getting back into the trend (if you were screen trading overnight)



The idea is to find ‘observed phenomena’ and use it to your advantage

once the parameters align:- sell higher opens using resistance & buy

lower opens using support, whilst optimizing the daily price action within the larger timeframe cycles.





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