EURAUD

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: 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.

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.