Stocks | Forex | Commodities
AUD/USD may have broken out from a cup and handle last Feb 16 but it didn’t reach my minimum target price of 0.91 (click here to see). Upon entering the breakout though, 100 pips would easily be bagged.
After my cut loss was hit a while ago, I re-entered AUD/JPY anticipating the break of the resistance. Entry price is 82.13, cut loss is 33 pips and my target price is 82.8.
Updates:4am 2-19. Resistance had been broken. I now move my stop loss to my entry price.
Updates:11am 2-19. Price went back it of the resistance line. Stop loss hit. Trade was breakeven.
We have here charts of EUR/JPY in two different time frames. On the left is the 3-hour chart with a 1-month time frame of the currency pair and had broken out of the downtrend’s resistance last Feb16. It’s currently moving on an upward trading range and may seem bullish. The image on the right however is the daily chart with a 1-year time frame and what looks to be an upward trading range in the 3-hour time frame seem to look like a rising wedge for the dailies of EUR/JPY. Still, it can be either one of those and can only be confirmed by a breakout or breakdown.
A few hours after my USD/JPY short sold trade was cut, I decided to re-enter. Instead of going short, I now went long since USD/JPY seems to have broken out of the downtrend’s resistance line in the 3-hour time frame. My entry price is 90.15 and my cut loss is 89.90.
Updates:11am 2-17. Moved my stops to my entry price of 90.15
Updates:7pm 2-17. Took profits, 35 pips up.
The USD/JPY currency pair in the 1-hour time frame (left image) shows an uptrend. Looking at the 3-hour time frame (right image) however changes the whole picture, instead of an upward trading range, we might be seeing a rising wedge. Despite USD/JPY’s unpredictable direction, it’s still a good currency pair to look at since a break out from the downtrend in the 3-hour chart is a good buy and a breakdown from the possible rising wedge on the other hand would be a great time to short sell.
