Thread: Forex Trading Setup 11.11.2010 – Buying AUD/USD on a Dip?

AUD/USD 11/11/2010 Daily and 4H


* Daily and 4H: The AUD/USD is still looking strong in the daily chart, although there is a bearish divergence. Price action also suggests a correction to this sharp rally within a channel.
* The 4H chart shows a possible count after coming out of consolidation. We can be in wave 4 right now, so if we stalk the dip, we may have another rally after the current dip.
* Wave 4 should be different from wave 2, and at the moment, wave 2 appears to have been a simple wave correction, so a 2-wave or even more complex correction can be expected. The market can go down towards 0.9880 in an equality swing. This move may be winding up for bullish continuation.
* This bullish outlook is invalid, if the market breaks below 0.9800. If it does, there is a chance, the USD is indeed in a strong correction, and the AUD/USD could slide towards 0.9400 area.


[I]Fan Yang CMT
Chief Technical Strategist
fxtimes.com

Thanks a lot fan. The analysis is really very nice indeed. Got some nice pips on the set up.

Thanks a lot for the info. I find it very informative. Hope more from you.