AUD/USD higher timeframe view for the week of 11/12/16
I’m still watching for a further stop-run and a short at the 4 hour supply zone (if we should get there). A more conservative entry would be to wait for the market to dip back below the red stop line. Alternatively look for a lower timeframe entry.
For you Fibonacci fans out there, the centre of the supply zone is also in confluence with the 50% retracement of the 8th November high.
Also note the reverse wick of 13th October at 0.7506 (below the engulfed demand zone) and how cleanly the market tested it’s underside on 8th Dec. The area around this line forms my “price pivot zone”.
Targets will be stops beneath swing lows at 7364 and then the low of 7311.
Full disclosure here… If you read my Twitter stream, you’ll see I missed my entry by 5 pips! However, the setup played out exactly as predicted and both targets were reached.