Irrespective of both of my MMMRs suggesting further downside today it seems that the AUD/JPY is clawing itself up overnight:
The 60-min breached the 78.47 NLBL and after a retest appears to be heading higher. The hourly also got a NLBL at 78.53 – which was confirmation. We are currently (2:20am EST) trading near the 78.57 mark after slicing through that 5-min NLSL at 78.61 – keep an eye on that. The hourly NLSL at 78.35 still appears to be safe for now – if it happens to be breached it will most likely lead us lower. But unless that happens things are looking good for the longs.
UPDATE 3:02am EDT: New hourly NLSL at 78.44 now – good for the next five hours unless we get a new one. FYI, the old one at 78.35 also remains valid. Off to bed now for real.
Yesterday evening around 6:00pm EST I emailed this ZeroFX setup out to all my subs – not just the Zero subs but all of them.
Now let’s see what happened to that setup:
Here’s the current screen grab of the 60-min panel on the ZeroFX chart – boy was that a nice trade. What however confuses me is that I received exactly one email in response and I can’t help but wonder – how many of you guys are:
a) watching the AUD/JPY on Sunday night?
b) hedging your equity positions with either the spoos or your favorite FX pair?
c) not receiving my emails?
d) just the quiet type?
As the old saying goes – you can lead a horse to water but you can’t make it drink. In any case – this again shows you why I constantly keep harping about currencies. You may ignore FX at your peril, but don’t be surprised if you find yourself gapped into oblivion on a regular basis.
Earlier today I sent out an email to all Zero subs after seeing signs of selling exhaustion on the AUD/JPY:
This is the screen grab I attached to the email. Not only was this a possible selling exhaustion setup, we also had a very conveniently placed NLSL nearby which allowed us to place a stop only a few pips below our entry – offering minimum risk. Now let’s see what happened to that setup:
Well, I can firmly assign this to the kick ass trade category. Not only took the AUD/JPY a b-line upward – it also bestowed us with an inverse buying exhaustion signal indicating that it was time to exit and grab a few pips to the downside.
Please show me any other indicator that gives you signals like this. And we haven’t even covered signal divergences yet.
The future is now – so don’t bring a knife to a raygun fight. If you are interested in becoming a Zero subscriber then don’t waste time and sign up here. A Zero subscription comes with full access to all Gold posts, so you actually get double the bang for your buck.