Browse Symbol Stacks: AUDJPY: After collecting 200 pips, can the $AUDJPY deliver secondary target? - The Market Zone
After collecting 200 pips, can the $AUDJPY deliver secondary targe...
The $AUDJPY short setup was an Elite Zone trade setup sent to the members back than in mid-April.
The pair completed a daily bearish Butterfly pattern and traded inside the PRZ (potential Reversal Zone) for about 3 weeks before it started the expected downward move.
After a strong 100 pips move down, the pair found support at 94.6 and which lead to another test of the PRZ, giving another chance to enter short based on the harmonic pattern (now with additional double top).
That last touch at the 96 level (the PRZ) was enough and the bears came storming in pushing this pair all the way to first target level - more than 200 pips for target 1.
Now after another rally, the pair is facing the 96 resistance once more. Can this resistance zone deliver another move downward? A stronger one which will lead this pair all the way to secondary target level?
Here are 10 important technical parameters to watch:
1.96 is the key resistance zone.
2. 96.5 is the stop loss level if you want to take a short position.
3. The pair just broke out of a daily uptrend line.
4. The pair is testing broken trend line (should act as resistance)
5. 95.2 and 94.5 are the nearest support zones.
6. The pair is in a weekly uptrend
7. The pair is near the top of a weekly rising Wedge
8. 50% Fib retracement (Weekly chart)
9. Daily RSI with bearish divergence.
10. Possible False Break if price closes below 96
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