This week analysis, I have zoomed out into the very big picture to search for key supports and resistances. I must say it has given me a few surprises and interesting results.

<<AUDUSD MN: Identifying S&R with confluences>>

On this monthly chart, I have plotted various S&R with supports in blue, resistance in red and highlighted confluences.

<<AUDUSD W1: Possible channel and trend line>>

Zooming in the H4, I have labelled possible trend lines and a channel.

<<AUDUSD H4: Failed H&S and Upcoming week forecasted expectations>>

The coming week seems to be pretty rough from my point of view since there was a failure on the H&S. There are a couple of possible scenarios that I have portrayed. First is the possible critical zone which is made up of the shoulder and the week high. Second is how this zone is respected in terms of whether it is going to be a support or resistance. Lastly, what and happens after that depicted by the Red and Blue arrows I have drawn with the sub-movements.

Samuel’s 2 cents: I more biased to go long, due to the channel and the failed H&S. Binni Ong, TerraSeeds Chief Trainer has taught Tflow® students how to trade on a failed head and shoulder. In fact, before this failed head and shoulder happened, she has already told the class attending Tflow® real time hands on to EXPECT FOR SURE A FAILURE.  She taught student this failed head and shoulder is a Dead Cat Bounce.  To get a glimpse of her vast experiences in Forex trading, do join us for the Free Forex Educational Session conducted by her. During this session, she will share with you on some mistakes and misconceptions that traders have and how to correct it!

To find out more, you can join our free forex seminar where we are going to showcase Tflow®.

Only registerd users (ie TerraSeeds Tflow® graduates) can view this post. Graduates please log in with your UID and password that you use for Forum. Find out how you can be part of our privileged trading community. Email forex@terraseeds.com

Only registerd users (ie TerraSeeds Tflow® graduates) can view this post. Graduates please log in with your UID and password that you use for Forum. Find out how you can be part of our privileged trading community. Email forex@terraseeds.com

Only registerd users (ie TerraSeeds Tflow® graduates) can view this post. Graduates please log in with your UID and password that you use for Forum. Find out how you can be part of our privileged trading community. Email forex@terraseeds.com

Only registerd users (ie TerraSeeds Tflow® graduates) can view this post. Graduates please log in with your UID and password that you use for Forum. Find out how you can be part of our privileged trading community. Email forex@terraseeds.com

Resistance worth taking note of

Aussie could go up some more with the key resistance near 0.9000.

Possible scenarios

From the H4 chart it can be seen that the Aussie has gone up this week, breaking another resistance (Highlighted in Green). For a long position, it would ideal for price to retrace back to the resistance turned support. At the same time, this up move could be a WR of the resistance. Therefore, watch out for this level and proceed accordingly.

To find out more, you can join our free forex seminar where we are going to showcase Tflow®

Only registerd users (ie TerraSeeds Tflow® graduates) can view this post. Graduates please log in with your UID and password that you use for Forum. Find out how you can be part of our privileged trading community. Email forex@terraseeds.com

Only registerd users (ie TerraSeeds Tflow® graduates) can view this post. Graduates please log in with your UID and password that you use for Forum. Find out how you can be part of our privileged trading community. Email forex@terraseeds.com

Only registerd users (ie TerraSeeds Tflow® graduates) can view this post. Graduates please log in with your UID and password that you use for Forum. Find out how you can be part of our privileged trading community. Email forex@terraseeds.com

Only registerd users (ie TerraSeeds Tflow® graduates) can view this post. Graduates please log in with your UID and password that you use for Forum. Find out how you can be part of our privileged trading community. Email forex@terraseeds.com

Only registerd users (ie TerraSeeds Tflow® graduates) can view this post. Graduates please log in with your UID and password that you use for Forum. Find out how you can be part of our privileged trading community. Email forex@terraseeds.com

Breakouts are popular among traders. However they can be so punishing if you get it wrong. Why? For the fact that buy high to sell higher means that you have bought at the worst price if you are wrong. And because false breaks are really common.

Well AUDUSD is at this point. Break or fade?

AUDUSD bullish breakout or fade-out

For bulls to play the break, look for a bull flag on the 4-hour chart that builds base at the yellow zone. Such a consolidation will allow late bulls to find low risk entry points for going long.

For bears to play the fade, 1. get a reversal candlestick pattern on day chart or 2. wait for reversal chart pattern on lower time-frames.

Only registerd users (ie TerraSeeds Tflow® graduates) can view this post. Graduates please log in with your UID and password that you use for Forum. Find out how you can be part of our privileged trading community. Email forex@terraseeds.com

The AUDUSD has just retested May lows and got supported. Bulls may consider a counter trend move.

AUDUSD gets support at May 2010 low

The 4 hour chart supports this likelihood because price has also beaten early week resistance. It now has to clear last week’s key support (turned resistance) in order for the bullish view to take hold. These two views will struggle until we know whether support or resistance is stronger.

AUDUSD trapped between 2 ideas

Only registerd users (ie TerraSeeds Tflow® graduates) can view this post. Graduates please log in with your UID and password that you use for Forum. Find out how you can be part of our privileged trading community. Email forex@terraseeds.com

How to trade AUDUSD and short at the high. Tflow® explains why it has to go up first.

Only registerd users (ie TerraSeeds Tflow® graduates) can view this post. Graduates please log in with your UID and password that you use for Forum. Find out how you can be part of our privileged trading community. Email forex@terraseeds.com

Only registerd users (ie TerraSeeds Tflow® graduates) can view this post. Graduates please log in with your UID and password that you use for Forum. Find out how you can be part of our privileged trading community. Email forex@terraseeds.com

If this support is successfully taken out, base on symmetry measurement and prediction and Tflow® , AUDUSD has a range of 850 pips till next significant support. This privileged post is only available to Tflow® graduates

Only registerd users (ie TerraSeeds Tflow® graduates) can view this post. Graduates please log in with your UID and password that you use for Forum. Find out how you can be part of our privileged trading community. Email forex@terraseeds.com

Week 19 (10 MAY – 14 MAY)

Good day to all! This week Aussie retraced upwards after touching a strong support in week 18. It started falling down significantly after it was unable to even reach the high of this week and this was confirmed from the break of the trend lines. Thus far Aussie has been surprising us, now it has formed a new equidistant (ED) channel in Blue. At this point in time, Aussie is at the low of the week.

AUDUSD 4-hour chart breaks trendline

Week 20 (17 MAY – 21 MAY)

I’m sure everyone is on their toes to find out what’s going to happen in the coming week. With this enthusiasm, I’ve painted a few possible outcomes which might brighten and warm up the coming autumn chills and  ’dark clouds’ from down under.

AUDUSD scenarios for week 20

1. Blue arrow: After creating a new low of the week, it is possible that it might want to test the previous week high. With the ED channel in mind, could this possibly be a bullish flag?

2. Red arrow: As you know, my best friend, his name is, Trend. As you already know, he might just disregard the blue ED channel and force his way down to the low of Nov ’09.

3. Green arrow: I have just realised how fascinated I am with ED channels, let us just simply say that this Aussie bloke is going to be a little shy and be contained in the channel.

From a fundamental point of view, there doesn’t seem much news worth taking note of. We might want to pay attention to the other ‘A’ (America).

1. Australia Monetary Policy Meeting Minutes – Tuesday, May 18 @ 9:30am (+8 GMT)

2. US Producer Price Index (PPI) – Tuesday, May 18 @ 8:30pm (+8 GMT)

3. US Consumer Price Index (PPI) – Wednesday, May 19 @ 8:30pm (+8 GMT)

4. US unemployment claims – Tuesday, May 18 @ 8:30pm (+8 GMT)

Only registerd users (ie TerraSeeds Tflow® graduates) can view this post. Graduates please log in with your UID and password that you use for Forum. Find out how you can be part of our privileged trading community. Email forex@terraseeds.com