From the update this morning, our 0.7420 sell point was violated by 8 pips and traveled to 0.7428. As I view other pairs, similar violations occurred in those prices. Our target at the 0.7428 sell point was 0.7359 but with the afternoon changeover, the bottom target was raised to now 0.7377. The profit on the trade is 51 pips instead of the original 61 pips. As I mentioned and will mention again, AUD is very volatile and will continue to be volatile for the next few days. We will still hit perfect targets and earn profits but it may require more posts and calculations to monitor the volatility. The next AUD post will be 9:30 p.m. EST as I’m in the US. For now we must trade what is offered until changes occur.
The current short term range is found between 0.7414 – 0.7377, a 37 pip range. The point at 0.7377 must break lower to target 0.7340 and 0.7291. A break higher at 0.7414 targets 0.7438 then the range top at 0.7489. Price will remain below 0.7414 for the remainder of the day until AUD markets open and begin trading. AUD is currently in a bad position and a 37 pip tight range.
Above 0.7414 comes next 0.7418, 0.7423 and 0.7438 target. The strategy is short on a break of 0.7377 to target 0.7340 then we monitor a possible break at 0.7340 to target next 0.7291.
Brian Twomey Inside the Currency Market, btwomey.com