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Renko Charts - Retracements

AUDJPY Renko Analysis, Chart. 0.25 Fixed box Renko

AUDJPY Renko Technical Analysis, 11/08/2014
AUDJPY Renko Technical Analysis, 11/08/2014
  • AUDJPY has been undergoing a correction to its uptrend
  • The most recent price action shows the AUDJPY renko to be heading towards a previously established support level at 93.85
  • A possible Head&Shoulders pattern is being formed in the process
  • For this Head&Shoulders pattern to be validated, we need to see a break of 93.85
  • Further downside support comes at 93.35. This would be a key level to short AUDJPY from upon retest
  • Expect to see some consolidation in play between 93.85 – 93.35
  • A long term trend line was broken but price moved back above the trend line but failed to make a higher high
  • Price bounced off a previously well respected trend line, testing it from below

AUDJPY – Renko Technical Analysis Short Term trade idea

  • Sell from 94.6, targeting 93.85 or wait for a bullish renko to form/close at 95.1 to short towards 93.85

While the overall bias is the uptrend, this short term correction provides a good opportunity to bank some pips

We will revisit this trade set up later as price heads towards 93.85 to determine the strength of the head and shoulders pattern

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