Thread: AUDUSD help

Hey everyone new to the forum but looking for some help already. I have just started to use bollinger bands and on a daily chart the AUDUSD is over extended on the top which should mean a sell right? Does anyone have any analysis to say which way it will go? Don't fully trust the bands yet.

For starters look at where the AUDUSD traded along the bottom of the bollinger band before moving higher. This shows that it can trade "overextended" for extended periods of time. I don't like to trade with bollinger bands but if you do want to trade by them you would short at this over extended level and put a stop above the high. Bollinger bands are most helpful in markets that are consolidating / range trading. I think we could have a small period of consolidation but we will eventually move higher. If you trade with the trend it won't provide as many pips right away but you'll collect rollover and eventually make more pips then trying to trade back and forth the whole time.

Check out my AUDUSD Elliott Wave Analysis

Thank you for the help. I did end up shorting this and made a little bit of profit. What are your primary strategies for trading?