Thursday March 4, 2010 - 20:18:15 GMT
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FXTimes: Daily Technical Update AUD/USD Reward and Risk Assessment for Bullish Swing
AUD/USD Reward and Risk Assessment for Bullish Swing
- Daily: The Daily time frame shows a confluence of
2 swing projections and the 78.6% retracement level near the 92.0 area,
and this has been established in recent posts as the target for the
current intermediate term rally. We are now in a second swing that
started at 0.88.
- 4H: The 4H time-frame shows a short-term
retracement, so far to the 38.6%. The next support if this breaks is
the 0.8940 area, which is 50% retracement. We will also see that this
is a swing projection of the first leg of the current decline.
- 1H: The screenshot below shows the reward and risk
assessment for 2 scenarios. The first is that the current retracement
decline continues to the 0.8940 area. Then if a bullish signal closes
near 0.8960, we have a reward to risk ratio of 2.66:1. (assuming target
is 92.00, and stop-loss is calculated by 3ATR below powerline.)
- If however the market does not decline further and is supported
above the 0.8970 (38.6% retracement) level, the reward to risk ratio is
Commodity Trading Advisor
Information and opinions contained in this report are for
educational purposes only and do not constitute an investment advice.
While the information contained herein was obtained from sources
believed to be reliable, author does not guarantee its accuracy or
completeness. CMS will not accept liability for any loss of profit or
damage which may arise directly, indirectly or consequently from use of
or reliance on the trading set-ups or any accompanying chart analyses.
Foreign currency trading is not conducted on an exchange. CMS is
acting as a counterparty to its clientsâ€™ transactions and as a result,
CMSâ€™ interests may be in conflict with its clients. Since CMS acts as
the buyer or seller in the transaction one should carefully evaluate
any trade recommendation provided by CMS or any of its solicitors.
Foreign currency trading involves a substantial risk of loss and may
not be suitable for all investors.
All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.
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