##{"id":58858,"date":"2011-09-19T10:57:11","date_gmt":"2011-09-19T00:57:11","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2011\/09\/19\/audusd-breaks-support-and-offers-sell-opportunity\/"},"modified":"2011-09-19T10:57:11","modified_gmt":"2011-09-19T00:57:11","slug":"audusd-breaks-support-and-offers-sell-opportunity","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2011\/09\/19\/audusd-breaks-support-and-offers-sell-opportunity\/","title":{"rendered":"AUD\/USD Breaks Support And Offers Sell Opportunity"},"content":{"rendered":"

\n\tBy Jeremy Wagner, Lead Trading Instructor, DailyFX<\/span> EDU<\/p>\n

\n\tThe AUDUSD<\/span> has been climbing in a rising wedge for the past 2 days. Prices are coiling up and this bearish pattern looks poised to break lower offering a sell opportunity. The Commodity Channel Index (CCI<\/span>) is flashing a bearish divergence signal and is breaking below its support line as well.<\/p>\n

\n\tThe Trade Opportunity<\/strong><\/u><\/span><\/p>\n

\n\tSell the AUDUSD<\/span> on a break below support near 1.0365.<\/p>\n

\tPlace a stop just above the recent swing high near 1.0410.<\/p>\n

\tLook to take profits near 1.0240 for a nearly a 1:3 risk to reward ratio.<\/p>\n

\n\tThe Trade Set Up<\/span><\/strong><\/u><\/p>\n

\n\t $\"\"$ <\/p>\n

\n\tThere are 5 points building this bearish set up.<\/p>\n

\n\t-Bearish rising wedge pattern
\n\t-Horizontal resistance at 1.0384
\n\t-200 Simple Moving Average on the daily chart at 1.0396 indicating resistance
\n\t-CCI<\/span> indicator showing bearish divergence
\n\t-CCI<\/span> indicator breaking its support line<\/p>\n

\n\tThe rising wedge was drawn by connecting the low of the wicks on prices from 9\/15 and 9\/16 to form a support line. A break of this support line will be our trigger into the trade. In addition to this wedge pattern, a horizontal red resistance line is formed from the high on 9\/12 at 1.0384. Also, the daily chart sports the 200 Day simple moving average at 1.0396. This moving average is watched by institutions and can provide resistance as well. This helps create a potential bearish set up.<\/p>\n

\n\tAdditionally, the CCI<\/span> oscillator is giving us 2 additional bearish signals. First of all, the yellow boxes on the chart indicate bearish divergence. That means the prices are pushing higher and creating higher highs, while the indicator is not confirming. The indicator in this case is creating lower highs. That means this move to the upside is losing momentum…much like when a car runs out of gas. The car can still move forward, but it doesn’t have the push like when there was gas in the tank.<\/p>\n

\n\tSeeing this bearish divergence near resistance prices helps create a good opportunity at a good risk to reward ratio. Now the question is timing the trade.<\/p>\n

\n\tThe upward sloping support line on the CCI<\/span> indicator is starting to crack as well. The blue CCI<\/span> indicator is starting to break below the support line. The indicator sometimes leads a break of the price trend line. So we can time this entry on a break below the price support line.<\/p>\n

\tThe views expressed are not FNArena's<\/span> (see our disclaimer).<\/p>\n

\n\tFor real time news and analysis, please visit http:\/\/www.dailyfx.com<\/span>\/real_time_news<\/p>\n

\n\tDailyFX<\/span> provides forex<\/span> news on the economic reports and political events that influence the currency market. Learn currency trading with a free practice account and charts from FXCM<\/span>.<\/p>\n

\n\twww.dailyfx.com<\/span><\/p>\n

\n\tDisclaimer<\/strong><\/em><\/p>\n

\n\tForex<\/span> Capital Markets is headquartered at Financial Square 32 Old Slip, 10th Floor, New York, NY 10005 USA.<\/u><\/em><\/p>\n

\n\tTrading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before you decide to trade the foreign exchange products offered by Forex<\/span> Capital Markets, LLC, Forex<\/span> Capital Markets Limited, inclusive of all EU branches, FXCM<\/span> Asia Limited, or FXCM<\/span> Australia Limited, any affiliates of aforementioned firms, or other firms under the FXCM<\/span> group of companies [collectively “FXCM<\/span><\/span> Group”] you should carefully consider your objectives, financial situation, needs and level of experience. If you decide to trade foreign exchange products offered by FXCM<\/span> Australia Limited you must read and understand the Financial Services Guide and the Product Disclosure Statement. FXCM<\/span> Group may provide general market information and commentary which is not intended to be investment advice and the content of this email must not be construed as personal advice. By trading, you could sustain a total loss of your deposited funds and therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading in foreign exchange products. Foreign exchange products are only suitable for those customers who fully understand the market risk. FXCM<\/span> recommends you seek advice from a separate financial advisor.<\/em><\/p>\n

\n\tFXCM<\/span> Group assumes no liability for errors, inaccuracies or omissions in these materials and does not warrant the accuracy or completeness of the information, text, graphics, links or other items contained within these materials. FXCM<\/span> Group shall not be liable for any special, indirect, incidental, or consequential damages, including without limitation losses, lost revenues, or lost profits that may result from these materials. This email is not a solicitation to buy or sell currency. All information contained in this e-mail is strictly confidential and is only intended for use by the recipient. All e-mail sent to or from this address will be received by the FXCM<\/span> corporate e-mail system and is subject to archival and review by someone other than the recipient.”<\/span><\/em><\/p>\n

\n\tTechnical limitations<\/strong><\/p>\n

\n\tIf you are reading this story through a third party distribution channel and you cannot see charts included<\/span>, we apologise, but technical limitations are to blame.<\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Market analysts at FXCM take the view AUD\/USD has broken support and thus offers a trade opportunity.<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10],"tags":[29],"acf":[],"_links":{"self":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/58858"}],"collection":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/comments?post=58858"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/58858\/revisions"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=58858"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=58858"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=58858"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}