Monday, March 19, 2012 — AUD/CAD BUY TRADE IDEA

by jennifer on March 19, 2012

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Next up, AUD/CAD:

The best way to describe what I see on the daily chart is “unfinished business.”

1. Price did not go all the way up to touch the 20 SMA. Maybe it will try that again.
2. I drew a red line at the level of the inner lower band. Below that, I’m looking for bearish moves.
3. RSI also did not “finish” it’s move upward to the 50 Line.

4 Hour chart:

1. I like the space between the two Combo Lines. I could imagine getting several back and forth trades in there for awhile, with 95 pips of room still in there.
2. Possibly, RSI and MACD histogram are re-loading momentum. If RSI pulls back up above the 50-line, I will be looking to buy this pair, targeting 30 to 50 pips in between the Combo Lines.
3. If MACD histo returns to 0-line, it could go either way from there. I will be looking for momentum to begin up or down. If it does begin to go up again, I’m ready with a buy in between the Combo Lines.

PLAN:
1. Buy if/when RSI goes back over 50.
2. Sell below recent low (blue line) about 1.0345.

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