Australian dollar another demand level could be eyed

I have taken a closer look on the cross last weekend, and waiting for demand level in Australian Dollar which could be eyed by Strong buyers, But the reason I am not too much eager about the setup is that due to strong selling pressure from multi month high.

But as I have mentioned I always look for setups that give clear indication of continuation and In this pair there is one on the cards offering pullback.

In the chart, I have seen some strong reference points which holds the highs and higher highs were posted and strong liquidation which has not yet picked up momentum,but it could be a part of extended accumulation. Strong points are :-

1. Price has strong protection area mentioned by blue line

2. Price close the week on lows at demand area

3. Price holding the demand level after strong selling which could be a part of strong accumulation.

Take a look at the chart below

All the traders who trade technicals and contribute a lot and achieved a lot and have confidence that setup has strong logic and reason to enter and exit. And same thing has happened here for me, as there is no strong supply but a little one around 0.9440-50 area which was previous top and stops could be place around 0.9330 in case any whispaw that will protect the entry .

Gbp/chf Breaks the equilbrium and momentum was again shifted

gbp/chf strong push to the upside after strong consolidation Intraday update

For those who did not see my earlier post take a look at here

First thing we do when we see a chart is to see what is the main trend, and when we have some strong background not too historic one but has happened just recently, and price start moving in the direction of the main, we start observing that whether or not the resistance o support will hold.

But when we see that type of chart where swing from low is strong and corrections are getting smaller, then we should wait for the final push and test and that is what happened in the cross and I was first to point out that franc weakness against strong pound is imminent and my doubt became more evident when price break the 18 months extreme and weekly and daily extreme on hourly chart.

Most important thing we do before we pick any particular chart is that what is the main trend and whether or not imbalance is still present in the market and the answer is yes, Imabalance is still present in the market .

When we see strong swing and price behave with low tempo when it start correcting then we need to just pick that type of chart and start looking for trade locations which was offered with the strong push through previous "consolidation range", and then price test and then spike was so strong it gone through all the barriers and in no time it climbed up more than hundred pips.

Are we seeing continuation of downtrend in Euro !

Are we seeing "Trend continuation to the downside Rally", Are we really seeing another attempt to downside for the Euro, And if I am correct, Then soon we will see the test of correctional bottom.

The idea I post earlier was that We have seen rapid liquidation after strong trend which means at-least one attempt to test the high and Very often price gravitates to the upside.

when we see such attempts, But all the attempts have been faded out and Now we will soon see another low in the trend.

In order to invalidate this Rally, we will have to break above 1.3695 and see an attempt to rise once again. But current rally and attempt to rise have been failed so far and the outcome is test of lows and possibly new low.

How much importance does context have In GOld Rally

Gold rally from lows is very strong and It has stalled and spent so much time near these areas, In order to point that strong holders are in dominance one should look to spent time near highs but breakout and shift in momenutum has nothing to do this time.

May be strong holders left the rally around this areas and recent breakout has been done by weak or small position traders and IF that is correct, we should soon see strong liquidation today or days to come.

I would bet on that sell-off today because of lot of high Impact News, First ECB rate decision and then "Non Farm Payrolls".

In the chart below I have pointed whether the recent breakout has been hold by "Strong holders", and if that the case they won't let sellers to get hold and will keep moving the price higher immediately after the Momentum fades out by price again breaking below the upper boundary of "Blue rectangle".

Gold Chart Possible false breakout followed by reversal

Simple rules when price spent so much time near highs then it works as double edge swords that whether strong holders are no longer interested, then it is overtaken by small holders and they continue to buy on dips and make a breakout but then immediately strong holders make their presence and create massive liquidation and that could be the case here as well in Gold chart.

Support resistance Trade Locations and Then Final Auction

As clear from title, I am talking about "Support resistance" (short term barriers as there are no terms associated with S/R In my trading)"Trade Locations" and "Final Auctions". These Terms are know to every Forex trader but How Important role they play in developing a successful trading career.

Nobody knows this answer, As these terms are incomplete without each other and When you trade any strong supply and demand market you will have to take them all together and then think about making consistent money.

I mean to say when a trend is maintained throughout and became an elongated trend and you find some sideways movement and then downside take momentum but it is faded out immediately, That means that imbalance is still there in the market and It will offer entry at good price.

Take a look at the follow chart of gbp/chf

Pair is in strong elongated trend, amid strong "Great Britain Pound" Across the board.

gbp/chf FInal push Break the equilibrium and all the barriers.

AS I have stated in my posts, there are strong convictions that when you approach that type of trading methods , the chances are that you might fail to understand the momentum when it hits the market, But the truth fact is that trend is often part of imbalance and till the time, price does not break the floor with strong downside candles, the chances are very big that trend will continue after "accumulation" end and distribution phase started.