GBP/AUD Daily chart providing signals the September 3.5% rise since 11th of September has now met with the open price of the month forming extremely potent resistance.
Provides a great reward to risk ratio to trade GBP/AUD for short – term downside.
- Daily – Price moving into resistance and September open price 1.18235
- Daily – Above 50 EMA – Watch for close below for first session.
- Daily – Below 200 EMA
- Price holding above the 200 EMA – 1.2% gap between price and 200 EMA
- Price holding above the 50 EMA
- Price at September open
- Ending diagonal?
- 8% Fibonacci for prior range
- Divergence between RSI lower high and price higher high.
Support – 1.80265, 50 EMA, 1.79100, 200 EMA
Resistance – 1.81665, 1.81800
Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals.
Optimal Entry – 1.81350
Supporting Entry – 1.81150
Candle Reversals for entry
As traders, it is your job to mitigate the risk and only trade structures that provide high probability and great reward to risk ratios.
If you are not comfortable with defined exit levels, experiment with Moving Averages to help set solid exit rules to protect your capital.
IF: Price breaks above 1.81825 level – this would suggest the structure is not in our favour and would be wise to reduce exposure or close the trade until a solid signal gives us reasons to re-enter.
Reward / Reward Targets:
Optimal Entry 1.81350 – Target 1 1.80265 = 2.2x Reward to Risk
Optimal Entry 1.81350 – Target 2 1.79100 = 4.7x Reward to Risk
Supporting Entry 1.81150 – Target 1 1.80265 = 1.2x Reward to Risk
Supporting Entry 1.81150 – Target 2 1.79100 = 3x reward to Risk