aud-usd review the week ahead, page-133

Nice Work Deliriou5,

'kay my main reason for shorting round here (apart from momentum stuff on the actual instrument) is that I have a close eye on the indices (spi spx500 Dax FTSE) at the mo, and they are all hinting to me that we gots a high potential of downside later tonight going int US open.

particularly the DAX which has gapped up on open in what to me looks like a potential exhaustion mmove, and I'm looking for a close of that significant gap... now perish the thought of bringin in index trading stuff into a forex thread, but I'm gonna anyway... we all know there is a correlation currently inverse though weakening between the USDollar and the indices.. USDollar rises indices fall and vice versa...

We also know that a break of a trend line/channel oft sees a retest of that break before resumption in direction of initial break... so The trade plan, incorporating indices, forex and momentum MACD voodoo, is to try to establish shorts prior to US open where in I see the potential for initial at least index downside, gap fill the DAX, ride the AUDUSD pair down at the same time and hopefully exit and prepare for revers to upside round the top of the hourly channel mentioned yesterday...

We'll see and of course I am a confidant [content moderated] so if'n I am wrong, the size of the pineapple to my nether regions should be small,

if'n I am right...

You wont hear the end of it :)

So far the dax is range trading in what could well be a bear flag with pretty strong negative divergence on the 5 min...

US futures o night are pretty strongly positive, oft followed by at least a test back to zero on open...all conforming... so far.. fingers n toes crossed :)))

;)