Top Trade Idea For December 4th, 2014 – AUDUSD
I want to trade the audusd to the upside this week as from my point of view we have a nice five waves structure for the pair and it seems that the falling wedge is completed, of if not completed, will complete around 0.8350 level.
After an impulsive move with a third wave extension, there is mandatory for price to return at the beginning of the fourth wave and this means we should trade again into the 0.8700 area. This is the simple argument for my target.
Otherwise, looking at the bigger picture, it seems that market ends a zigzag and it is a normal one, in the sense that the c wave blue (the one that you can see in the chart above) stretched all the way down and reached more than 61.8% when compared with the previous wave a.
Being a three waves structure, we might look into a retracement that is more than 61.8% when compared with the whole move down, but I would say this is a long shot scenario.
Therefore, would like to take it step by step and first see how market structure looks like by the time the 0.8380 area comes and then decide if still remaining on the long side.
About Mircea Vasiu
Mircea Vasiu has an MBA in International Business from an American University, graduating Magna Cum Laudae. He has been a professional trader for the last 8 years and is involved in various educational projects for different financial companies. He also runs a trading signal for the currency markets at www.capitalpropertiesfx.com.