Trade Brief
Looking for a GBP/AUD buying opportunity circa 50% fib retracement from 16/11/14 low (1.78564) / 17/12/14 High (1.93066).
Technical Analysis
Currently in the 4th (corrective wave) which may see it fall back to the 50% fib retracement zone, a level which provided prior resistance at the beginning of both October and November 2014.
The 200 EMA is creeping up towards this zone which may coincide with the retracement and help in triggering a reversal.
Fundamental Analysis
RBA Governor Glen Stevens has stated that the AUD exchange rate needs to be lower to achieve balanced growth in the economy.
www.rba.gov.au/media...s/2014/mr-14-21.html
I will play this by looking for a strong entry signal within the 50% retracement zone, looking for a tight stop, taking half of my profits just below previous high at 1.92102 if it plays out as expected.
Looking for a GBP/AUD buying opportunity circa 50% fib retracement from 16/11/14 low (1.78564) / 17/12/14 High (1.93066).
Technical Analysis
Currently in the 4th (corrective wave) which may see it fall back to the 50% fib retracement zone, a level which provided prior resistance at the beginning of both October and November 2014.
The 200 EMA is creeping up towards this zone which may coincide with the retracement and help in triggering a reversal.
Fundamental Analysis
RBA Governor Glen Stevens has stated that the AUD exchange rate needs to be lower to achieve balanced growth in the economy.
www.rba.gov.au/media...s/2014/mr-14-21.html
I will play this by looking for a strong entry signal within the 50% retracement zone, looking for a tight stop, taking half of my profits just below previous high at 1.92102 if it plays out as expected.