Forex Price Action - Large AUD/USD Engulfing Bar | Sept. 6th
AUDUSD
Taking a more quantitative approach to the Aussie today;
After selling off 13 of the last 19 days and shedding 450pips in the process, the Aussie took back almost three days of losses with an impressive bullish engulfing bar. This is the fifth largest bull bar on an open to close basis for the year.
To date, we've only had three other bullish engulfing bars opening below the 20ema this year. Out of those three, two of them were followed by bear days. If the history and the numbers have their way, today will be a bear close.
Intraday pullbacks to the 1.0250 former range resistance area could be a solid location for short term bulls to take another jab at the 1.03 highs today. Bears can look to sell around 1.0330 on weakness, which is the daily 20ema and July 5th swing high, but there are price action plays for both sides here.
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Comment by Peter jcp on September 6, 2012 at 10:33pm -
Hi Chris - I appreciate you love your "groundwork" - or due diligence on the past repeating in the future. You mention only 3 times this year and on 2 occasions -the following days were bearish - did any of those past occasions fall on a NFP Friday ?
I hope you have done well on the Aussie and have a great September
Regards
Peter
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Comment by 2ndSkiesForex on September 6, 2012 at 10:49pm -
Hola Peter,
Sure, I like the quantitative data and it can be fun some times. But to me, the markets are both order and chaos (like life), art and science, so I consider it one lens to approach the markets. I will say though, the math works well at the casinos more than the 'art' does.
In regards to your questions, none of them were NFP friday's from what I saw.
All the best mate.
Kind Regards
Chris
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