USD/JPY & EUR/AUD review, November 30th 2012 (English Language)

Hello traders,

this morning I worked on review of two interesting pairs. They are very technical and my method works very well on them. The two pairs are:

  • US Dollar versus Japanese Yen (USD/JPY);
  • Euro versus Australian Dollar (EUR/AUD);

I have analyzed the first pair, USD/JPY on November the 21st when I have indicated a trading plan for this pair, as well. Price behaved as anticipated and the 80.67 anchor I have indicated is now in play. The support level and long setup is 81.80 having two targets above at 83.30 and 84.10. Any opportunity to get long should be taken with a stop below 81.50 or, more aggressively, below 82. Notice, however, that the 81.80 level could be retested.

I regularly feature the USD/JPY pair in my weekly FibStalker View on Currencies (see an example here) I share with my Newsletter subscribers.

On the other hand, it’s the first time I analyze the EUR/AUD pair in my blog and I have to say that this pair is also a good one to trade and keep an eye on. My trading method works very well on it. Long-term this pair is trading in weekly extension shorts and the next resistance and short setup is at 1.2770. But should price be able to decisively climb above the 1.3040 level the long-term sequence lower would be negated and the EUR/AUD could have the possibility to move higher into the 1.63 area.

This seems a long way but should the commodity bubble in Australia burst the Euro could strengthen, also because the market has somehow already discounted its debt bubble and with the US Dollar weakness money could actually be channeled into the Euro rather than the Aussie. We don’t possibilities or ideas, fundamentals or what could actually happen, though: we trade price.

Moving into the daily chart we can see support at the 1.2220 area with a first target at 1.3110. Such target would negate the sequence of measured moves short on the weekly and open up the possibility for higher prices. We are at daily targets at the moment and we could see support at 1.2370 and 1.2330, before continuing higher.

You can watch the below review and analysis video for more information:

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If you intend using this information for your trading please do your own diligence, find the advice of a trading professional and trade at your own responsibility. The information provided is for educational purpose only. Please read the Disclaimer and accept all the risks. Thank you.

Have a good day


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Filed under English language, Forex, Trading Plan

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