I posted just a few days ago about a key technical level on GBPAUD for a short opportunity that could lead to a Head and Shoulders Pattern confirmation. At the end of Tuesday's trading candle the market confirmed the break by closing well over 100 pips below the neck line.
As with all very significant breaks of support and resistance we are looking to gain an optimal entry on this position by waiting for the market to retest the significant level. Patience is key.
Head and Shoulders Patterns typically have a measured objective that equals the distance from the neck line to the top of the 'head'
Additional Details: The market needs to respect the neck line that has been identified, look for a daily close ABOVE 2.0740 to negate this pattern. It is perfectly acceptable for the market to spike into this territory but CLOSE lower. The CLOSE of the daily candle is the significant factor.
Please do your own analysis before entering a trade. If you like what you see feel free to comment, follow or "like"
交易开始
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Stay safe during NFP everyone - Remember Candle Closes are more important then reactionary movements.
good analysis sirr..I am big fan of you and I am always waiting for your analysis
Synapse
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Thank you very much, appreciate the feedback.
ishstar
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Is this trade still active?
Synapse
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Yes. We're in the middle of a weekly retest. Looking for Friday's close to be at or below 2.07 area
HARDIKMAYANK
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Sir what is your view today about eur/usd it goes up or down due to nfp event
Synapse
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I don't speculate about which direction a News Release is going to take a currency pair. Often times there are wild reactions in BOTH directions, all of which are accounted for within the Daily and Weekly Candlesticks. My advice to anyone trading the Eur/Usd pair early this morning is to do so with caution or simply wait til it's over and done with, we had a much stronger than anticipated move yesterday and the market needs a little bit of time to figure out exactly what it is doing. The move yesterday moved through so many key resistance levels that it's hard to gauge immediate future direction.
tavis
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Synapse - thank you for your analysis. What is your view on the GBPAUD pair over the long term?
Synapse
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Thanks for the feedback as well, much appreciated. How long term are you talking? like through 2016? This particular trade could very well carry for several weeks