After posting an impressive 600+pip gain for the year, the pair has posted its first 4 out of 5 day bear close along with its first touch of the daily 20ema in over a month. What should be noticed is how price rejected off the daily 20ema almost to the pip, then closed up 60+pips off the lows. This makes the rejection off the 20ema larger in price action then the selling in the body as can be seen in the chart below.
Looking at the 4hr chart below, one can see a very long pinbar which created a false break of the prior swing lows and gravity point we discussed yesterday. Many of our price action traders got in on this short hitting the target making close to a 100pips on the day so hopefully you profited from this as well.
What should be noted now is the pinbar false break likely trapped some traders on the break of the lows while also likely means medium term traders bought off the daily 20ema. This offers traders a good play by taking a small pullback into the 1.0660 – 1.0640 region with stops below the pinbar low, while targeting minimally the SH (Swing High) which offers a good 2.5:1 R:R play or the MSH (Major Swing High) which offers more than a 3.25:1 R:R play for the bulls. Bears can wait for pullbacks to the MSH with tight stops above targeting the SH labeled in the chart and the daily 20ema which offers a fantastic 6.25:1 R:R play.
For those of you looking to trade intraday price action, visit our Advanced Price Action Course where we teach rule-based systems for trading Price Action.
If you found the price action commentary and insights useful, please make sure to click the ‘Like’ button at the top of the page.
- English (UK)
- English (India)
- English (Canada)
- English (Australia)
- English (South Africa)
- English (Philippines)
- English (Nigeria)
- Deutsch
- Español (España)
- Español (México)
- Français
- Italiano
- Nederlands
- Português (Portugal)
- Polski
- Português (Brasil)
- Русский
- Türkçe
- العربية
- Ελληνικά
- Svenska
- Suomi
- עברית
- 日本語
- 한국어
- 简体中文
- 繁體中文
- Bahasa Indonesia
- Bahasa Melayu
- ไทย
- Tiếng Việt
- हिंदी
AUD/USD: Possible Breakdown
Published 02/15/2012, 01:31 AM
Updated 05/14/2017, 06:45 AM
AUD/USD: Possible Breakdown
AUD/USD – Possible Breakdown
Latest comments
Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.