Where prices is sitting now seems like a very good area to start the attack for a sell opportunity. If you look to the charts we can see that we have a nice long Bearish Continuing Divergence on the MACD indicator, RSI indicator is playing around the 80 levels which is very extreme and that tells me that the market is getting ready to change direction. We also have 25 candles riding the Bollinger Band which is another visual indication that price could make a direction change from here. Based on what I have said I would look to attack now and add to our position at 1.0840 and again at 1.10 maybe even a little bit lower like 1.0980. Target one will be the 20MA of the daily charts and we will be aiming the lower boundary of the Bollinger bands for target 2.
AUDUSD Trade Setup February 07,2012
AUD/USD Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3