The following is the AUDCHF daily chart as of DEC. 23, 2009. If you observe the graph you can see that
1) The chart has reached the bottom moving average of the bollinger bands.
2) There is a resistance line at this bottom moving of of the bollinger bands.
3) CCI has reached the oversold region by crossing below the -100 line.
4) Stochastics oscillator has reached the oversold region by crossing below the -100 line.
5) It looks like a bullish engulfing candlesticks are forming.
So by tomorrow if a bullish engulfing cadlesticks are formed, I think its a good opportunity to enter a long trade for this currency pair. what do you guys say?
audchf possible long trade opportunity
Ok. Today is Dec. 27th and the time is around 9PM Est. At this time if you observe the daily chart you can find the strong support line as mentioned in the above post. Moreover
1) CCI crossed above the -100 line from below which is the oversold region.
2) Stochastics oscillator crossed above the 20 line from below which is from the oversold region.
Check the following AUDCHF daily chart.
But if you observe the hourly chart you can see that
1) CCI has reached the over bought region.
2) Stochastics reached the over bought region.
So even though the daily chart is showing a very good entry for a long trade its better to wait until the hourly chart comes back from the overbought region to the normal region which below 100 for CCI and below 80 for stochastics. If these two indicators in the hourly graph reach the oversold region that would be much better. Any how this may happen until the London market starts which is 3AM in EST time zone. So when the London market starts, by that time the hourly chart may reach the oversold region and start increasing again. So its better to wait until the London market starts. Check the following AUDCHF hourly chart.
The following is the AUDCHF daily chart after around 1 week of the above post is made. You can see that it went up to 350 pips but now there is a strong resistance line for this. But if you observe the graph it hasn’t reached the bollinger bands yet. So this resistance my break. If this resistance is broken there is another possible good opportunity for a long trade. Check the following picture.
