Free Forex Signals and Technical Analysis from PipHut.com
5:54a GMT – AUD/USD pair is consolidating beneath .9600 after a 70 pip flagpole rise 6 hours back. My inclination is that the pair will shoot through the 0.96 resistance after consolidation but because the entry would be just below a large round # and because of the overbought hourlies I am not placing a signal or entry order on this one. A rising RSI trendline does confirm the direction.
UPDATE – Pair did rise 30 pips, hitting as high as 0.9615 which is a 20-year high. since then pair has retreated back below .9600 but has been unable to break support at .9570. Our overall bias is still up.
Weekly Review: Good no trade. Pair rose 30 pips before falling back down to .9560. A standard flagpole trade would have called for an entry at .9596. The pairs high before dropping back was .96170 so a 20 pip stop would have barely squeaked by while a 25 pip stop would have been a loser (remember first lot is equal to risk or the stop). The ATR was around 18 with a 3 pip spread so a 20 pip stop would have been acceptable (especially given the caution of the large round number) but a 25 pip stop would have been more conservative.
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