News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Australian Dollar Double Inside Day Trading Idea

Australian Dollar Double Inside Day Trading Idea

Jamie Saettele, CMT, Sr. Technical Strategist

Daily Bars

eliottWaves_aud-usd_body_audusd.png, Australian Dollar Double Inside Day Trading Idea

Prepared by Jamie Saettele, CMT

“An AUDUSD top is either in place or will be with one more high.” Consecutive inside days have formed in the AUDUSD. This rare occurrence indicates a contraction in volatility and presents a short term breakout opportunity. Since 2000, there have been just 22 consecutive inside days in the AUDUSD. A simple strategy is to buy the high and sell the low of the engulfing bar (10449 and 10301 in this case). Closing the trade after 1 day would have resulted in 13 winners and 9 losers. The average win was 89 pips and the average loss 35 pips. The largest win was 232 pips and the largest loss 137 pips.

Bottom Line – short, use USDOLLAR 9855 as a stop

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES