Daily Forex Trading Commentary AUDUSD in focus

The AUDUSD is moving towards 0.9400 support. it  lost modest ground on Friday over Thursday close. We still see weakness as the dominant theme in this market and will watch any rotation into resistance for price action sell signals to re-join the downtrend. We can see support sits near 0.9400 and resistance comes in between the 8 / 21 daily EMA layer.
AUDUSD

So set Sell stop @ 0.96630, take profit @ 0.93898, stop loss @ 0.97842

Pending Long EUR/AUD and USD/CAD, Entered Short AUD/USD and EUR/GBP

Still holding short EUR/GBP at the start of the week, while the short-term short AUD/USD is now in the money.

In regards to the EUR/GBP, the first pass resulted in the trade being stopped out at a loss given the dip before the EU summit and the rally thereafter; the trade was initialized on a false break.

However, on a second pass, considering the range held up (as the break above the Range Top was classified as a false break) the trade was reentered given the original targets. The Stop was moved to the Entry level to ensure that losses are capped at Break Even.

With that said, the other trades on the table have not been initialized but remain within their timeframes and within their bearish formations.

ENTERED

Short AUD/USD

- ENTERED: Short at 1.0270 [Trend Line Support)

- Stop MOVED TO ENTRY: 1.0270 [0-pips]

- Target 1 HIT(Reward/Risk Ratio): 1.0220 (50/90, 0.56)

- Target 2:1.0081 (189/90, 2.10)

- Target 3: 1.0000 (270/90, 3.00)

- Timeframe: 3-days

Short EUR/GBP

- ENTERED: Short at 0.8690 [below 20-DMA]

- Stop MOVED TO TARGET 1: 0.8600 [Double/Triple Top] (+90-pips)

- Target 1 HIT (Reward/Risk Ratio): 0.8600 (90/104, 0.87)

- Target 2 HIT: 0.8523 [76.4 Fibo] (167/104, 1.61)

- Target 3: 0.8465 [Range Bottom] (225/104, 2.16)

- Timeframe: 2-weeks

PENDING

Long EUR/AUD

- Entry: Long at 1.3640 [above Moving Average Confluence Zone]

- Stop: 1.3407 [61.8 Fibo] (233-pips)

- Target 1 (Reward/Risk Ratio): 1.3775 [Last Week's High] (135/233, 0.58)

- Target 2: 1.3827 [23.6 Fibo] (187/233, 0.80)

- Target 3: 1.4030 [Range Top] (390/233, 1.67)

- Timeframe: 2-weeks

Long USD/CAD

- Entry: Long at 1.0369 [sub-wave a of wave 4]

- Stop: Stop to 1.0234

- Target 1(Reward/Risk Ratio): 1.0657 [termination of wave 3, weekly high] (288/135, 2.13)

- Target 2: 1.0854 [projected termination of wave 5] (485/135, 3.59)

- Timeframe: 2-weeks

Short AUD/USD

- Entry: Short at 0.9845 [38.2 Fibo]

- Stop: 1.0046 [23.6 Fibo] (201-pips)

- Target 1(Reward/Risk Ratio): 0.9683 [50.0 Fibo] (162/201, 0.81)

- Target 2: 0.9521 [61.8 Fibo] (324/201, 1.61)

- Target 3: 0.9386 [October low] (459/201, 2.28)

- Timeframe: 3-weeks
by DailyFx