This month's ProAct Traders “Pay Your Mortgage Trade” idea is found in the GBP/AUD and the EUR/AUD pair.
06/13/17
GBP/AUD
We see that we are still in a 3rd wave to the downside and are waiting to finish this correction and then resume the move to the downside. The overall target from here is 682 Pips away at the S7 (1.6234). The 4th wave could be 150 pips or so which would add that to the total if caught at the top.
How to trade it? You will need to wait for your set-up to show up, for London and New York traders, that will mean waiting for the reaction now in the current area. Take your first entry and use the respective risk reward ratio to start trading this currency pair. We have preplaced entry orders (sell stops) on the break of each Fib and barrier to the downside and any rally should be considered an area to add to the position. DO NOT TRY AND CROWD THIS PAIR WITH TIGHT STOPS. Remember the “pullback is your friend” in route so use those to add to the position.
Be careful at the 0.618 Fibo at 1.6605 since that may be a bounce point to pullback and go up.
The pair typically has pullbacks in the 180 pips range so every pullback could add an additional 180 pips to the trade with another position. Currently the ATR (14 Day - Average True Range) of the currency is 183 Pips per day, so this might take about 2 weeks with pullbacks!
We see that we are still in a 3rd wave to the downside and are targeting the 0.786 Fibo at 1.5277 as the target for the 4th wave bounce. The overall target from here is 557 Pips away at the S7 (1.4946). The 4th wave could be 150 pips or so which would add that to the total if caught at the top.
How to trade it? You will need to wait for your set-up to show up, for London and New York traders, that will mean waiting for the reaction now in the current area. Take your first entry and use the respective risk reward ratio to start trading this currency pair. We have preplaced entry orders (sell stops) on the break of each Fib and barrier to the downside and any rally should be considered an area to add to the position. DO NOT TRY AND CROWD THIS PAIR WITH TIGHT STOPS. Remember the “pullback is your friend” in route so use those to add to the position.
Be careful at the 0.786 Fibo at 1.6605 and also the 1.5089 area since these may be bounce points to pullback and go up.
The pair typically has pullbacks in the 150 pips range so every pullback could add an additional 150 pips to the trade with another position. Currently the ATR (14 Day - Average True Range) of the currency is 124 Pips per day, so this might take about 2 weeks with pullbacks.
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