Broken its main resistance today, as mentioned yesterday.

Has broken out of its symmetrical triangle, if it clears the main resistance just above then it could go a lot higher.

Hi RMc,

Yes, I did mean Ki. Sorry about that - the old grey stuff is still a bit foggy perhaps

Anyway, it'll be interesting to see where this finishes today as there are loads of areas of support round here. I managed to close my short but my long from 12555 got stopped out for a small loss so I'm waiting now. Here's a close-ish view of the daily with a couple of sets of Fibs drawn on:



dl.dropbox.com/u/20815047/EURAUDdaily03_01_13.gif

There's the old downtrend, a few Fib supports and the shorter term uptrend. I'm now looking for a long entry at that uptrend which is at 1.2434 today and I'd have a stop below 1.2400 as there are two Fib supports and the round number support there. It might not get there though so we'll have to wait and see.

From an EWT POV if it closes above 1.2545 then some might argue that the rule about wave 4 not entering wave 1 would still be intact but given that it's hit the 61.8% retracement of the last rise I'd suggest that this current drop is more likely to be a subwave 2 of a larger wave 3 up or that the whole chart is, in fact, bearish. This latter seems less likely given the recent downtrend breakout but it can't be completely ruled out IMHO.

I think there are some P&F targets around the 1.2400 area too so that uptrend support looks favourite to me.

Sorry for the quality....... mrs on the laptop
I'm relegated to the ipad

Edit...... Better image

clip2net.com/s/2Frgb

Jackozy wrote:
Do you mean KI Jackozy?

Anyway this level needs watching very closely
Over the past 12 month it has been a crucial area for support and resistance





The better the price action the greater the move
Great find.

RMc

Hi all and a Happy and Prosperous New Year to you all too!

Quick update on this pair. Resistance at 1.281/2 came into play so was a good place to close longs from the downtrend breakout. Given the candle pattern at that level I chose to go short against the trend from there because it was also backed up by the 161.8% Fib resistance using Ai's reverse Fib theory (plotted on chart below). I'm looking to close this short just above the support at 1.2545. This should also be the place to go long as it's also near the old downtrend resistance so it could also be a backtest play. The shorter term uptrend is not too far away from there either. It's all shown here:



dl.dropbox.com/u/20815047/EURAUDdaily02_01_13.gif

It'll be interesting to see if it then rises to the 261.8% Fib per Ai's method.

Sorry, CT, been in and out all day.

Stop below 1.2545 ought to do it as that was the previous high.

Jackozy/Remo,

Just wondering what you would put your stop loss at on this?

Below 1.2464 or 1.2546

Thanks

good call mate.
i went long as well after reading your post
Its a free trade now for me

happy days

Metastock is not showing a gap:

14/12 - High = 1.2461
17/12 - Low = 1.2461

Honestly? I haven't put one in yet! I just bought the breakout then had to go out! Is there a gap up 2 candles ago?

Hi Jackozy,

do you have your stop below 1.2464?

Thanks

CT79

I'm long on this pair now due to the breakout:



dl.dropbox.com/u/20815047/EURAUDdaily19_12_12.gif

I'm a bit gutted I didn't reverse my short and go long on this pair at the uptrend support a few days back. It's now at the major downtrend resistance but I'm not shorting it again as it's got back there too soon and other EUR pairs are looking good for longs. Here's the long tern view:



dl.dropbox.com/u/20815047/EURAUDdaily18_12_12.gif

And the short term view:



dl.dropbox.com/u/20815047/EURAUDdaily18_12_12a.gif

I'll look to go long on a backtest of the downtrend resistance after a close above it if that happens.

Good 100 pips there if you took it on, Jackozy

One to keep an eye on due to long term downtrend resistance close by. It may already be turning:



dl.dropbox.com/u/20815047/EURAUDdaily06_12_12.gif

Wait for 1.2596 or short now with a wide stop above that level perhaps

Opened long on fri night @1.2440.
Closed today @ 1.2519
Same reasons for going long as EURNZD