Here is a short term trading opportunity that may present itself this morning on USDCAD. Look to set Longs on a push down through the 1415 Transition Level. Target is River at 1488 Risk should be below the 1379 demand level.
Here is another possible short term idea for today in the AUDUSD. Look first to set shorts near 8261. Target is River at 8196. If the recent swing highs above 8261 are overcome, you can stop and reverse the position and target 8329. Cover completely at 8329 as a move down is coming.
I continue to follow yesterday's analysis and have updated the River Level as well as the Price Distribution Analysis for this month. For those of you trading along with me, I remain short today. This is a high risk, countertrend trade. The market moved against my position and I am currently down 53 points. The market did close 29 points above River today, however it is not significant enough to sway my downward bias just yet. Today's River Level comes in at 3400 and this will be our guide downward. If you are short stay short. Targets are 3346 and 3279 where shorts should cover or take partial profits. I continue to look for a strong move down to the 3132 area, but it will be important for us to move below the Transition at 3279. Our goal is move down with the flow of the River Level as we develop a new directional move. What tells me my view is incorrect? Any significant daily close above River which is 3400 would cancel my downward bias. I will look to set up longs above River. Traders should review the new Price Distribution Analysis for April. You will see that we are resolving a key level which will give us a better understanding of our short term plan.
I continue to follow yesterday's analysis. If you are trading along with me, you should be short. I reset shorts at 9741. Today's River level is at 9720 and we closed 28 ticks above this. Not significant enough for me to exit my shorts just yet. Today's River level comes in at 9720. If you are short, stay short. Traders can be active establishing new shorts at this level. My short term target is 9528 where traders should cover or take partial profits and watch for a move below this critical area. What tells me my view is incorrect? We want to use the flow of River as a guage for downward movement until we are proven wrong. Any significant daily close above River at 9720 tells us to exit our short trade and look to set up long above River for higher levels. You should reveiw the new Price Distribution Analysis for April. You will see that we have two key demand zones to overcome before any significant downside is achieved.
If you are trading along with me, you should have reset longs today on the recent move down in front of Tuesday's River level of 118.71 as recommended. I am once again long out of this level with approximately 70 ticks of profit. We moved back to the critical 119.40 supply level again today and it held. Continuing with the theme of this trade, I expect price to break through this level to 119.80. Traders can look to take partial profits at this level or hold and expect a move back down to 119.40. What tells me my upward view is incorrect? Any significant daily close below River at 118.78 and longs should exit. Traders should reveiw the new Price Distribution Analysis for April. This will indicate the significance of the resolution of the 119.40 level for our next directional move.