Intraday Aud/Usd Trading

The daily chart which closed march 12, 2008 shows a panic sell-off from Negative Market sentiment, and annual JPY repatriation. This is the 3rd week of March, so expect more downside. Look for buying opportunites at the bottom. Those who are more risk tolerant can scalp it to the downside. Trade at your own risk contratrend. Bigger risks but big rewards are possible. Risk of loss on a resumption of trend is probable.

Tester positions should be located at support. The 5 sma and the 22 sma (green color) are in confluence. The 5 is still above the 22. All 4 momentum indicators are pointing sharply down. Wait until the new weekly, daily, and 4 hour charts are updated Monday/ Sunday night. Study what changes occurred over the weekend, and what Market Sentiment is doing. Asia could open very bearish if there is panic. Stand aside until this is resolved, and look to buy the pair at a good price. Wait for the market to run stops downward. The big boys are looking to buy cheap. And the way they accomplish this, is by driving the market down in times of low volume, and testing the long positions of newbies who bought it high chasing the market. They will drive the price below this zone to collect any stop losses sitting there. When a newby gets stopped out on a long position, he must sell to exit. Guess who is the buyer?

This 4 hour chart is helpful for intraday traders to determine higher highs/lows, and lower highs/lows. The Target is the confluence of sma’s then the red horizontal line representing a previous rejection. Making lower lows confirms retracement down to test previous support/rejections. Making higher highs confirms resumption of uptrend to test the previous highs.