AUDUSD

This ones been playing around with the trend line for a while now and finally has broken though today

This has now dropped to an area where there's loads of support and it could be forming a hammer here with a bullish RSI divergence:



dl.dropbox.com/u/20815047/AUDUSDdaily04_03_13.gif

Maybe one to try remo's method of entry half way down the hammer with stop below it if it closes like this.

This followed through last night but I still think there's a chance of 1.0165 area for a long entry with stops below 1.011 as that's the 61 fib of the initial rise (so far).

If it races on then I'll just wait for a retrace. I'm not chasing it.

I went short on this this morning @ 10238.8 with a ~16 point stop

Initially targeting 10190 but I believe that could be a conservative target. We shall see.




Smaller timeframes such as the 15m showing bearish divergence at those highs.

This is a short term trade, I know there is a support level just below and there is an argument that this will head upwards - but I believe in the short term it will respect the resistance level and it is also why I picked a conservative target.

Disclaimer:

Another thing to note that adds risk to the trade is the EurUsd chart.
There is a case that this chart is showing bullish signs, and I don't often like to take trades where two charts like these are not correlating as much as I thought they would.

possible short term 123 low??? This is currently testing the breakout point. stops below 2.
since the stop is quite far away which effects the risk reward im having my stop just below yesterdays low.10264