Currencies | Dec 16 2010
FNArena has added another video to its Investors Education section on the website.
ATW's Jerry Simmons believes the odds are now in favour of bullish breakouts for AUD/USD and for copper. This is likely to take both to higher price levels. Total duration of this A-V broadcast is 40 mins.
Summary and Comment on ATW Strategic Prep Video 2010-12-13 “AUDUSD HnS Local SnR_HG_5W”; .wav format; 40 min total duration; 57.8 MB
Summary
In this video, Jerry Simmons, Lead Mentor and Co-Founder of the Advanced Trading Workshop, Inc. (“ATW”), New York, provides follow-up analyses on his recent Strategic Preps on the AUDUSD pair and copper.
He concludes that a HPPD pattern (high profit potential day) is in place for the AUDUSD this week favouring a volatility breakout, an Open-X / Close-X with a B/O to the upside the most favoured outcome. If so, the immediate upside target would be 1.0180-1.0200; the secondary target being 1.0350.
For copper, a 5-wave-move is interpreted, with a minimum target of 4.24 and an ideal or primary target of 4.31/4.36.
Comments
AUDUSD
The primary interpretation of recent spot price action is that a H&S (head and shoulders) pattern has formed. Two scenarios could develop:
1. A price drop below 0.9750 would confirm the H&S pattern with obvious implications for a further price drop below the neckline possibly as far as 0.9000.
2. However, if the spot price rises above the left shoulder zone (0.9950-1.000) this would constitute a key event and would invalidate the H&S. It would not only confirm that the previous up trend is still in place, but re-initiate an impulse move.
The latter scenario appears to have higher odds at the moment. This interpretation is supported by the narrow (200 pip) price range of last week, forming a Doji, which is a HPPD pattern, increasing the odds both for an Open-x/Close-x (price opens at one extreme and closes at the other extreme of the weekly price bar). The higher the AUDUSD price moves now, the higher the likelihood for follow-through to the upside.
Buy stops are plentiful above the 1.000 price level. They consist both of short-sellers who would bail out stopping their losses, and of bulls going long based on the price B/O above the key 1.0000 AUD-USD parity level. Such an RBO above parity would be followed by an immediate target (DF1/DF100) of 1.0180-1.0200 and a secondary price target of 1.0350. The maximum penetration point for a DT is at 1.0350-1.0400.
Copper
Copper, besides the AUDUSD and the FXI ETF, is also a leading indicator for the world equity markets. It has broken above its maximum penetration point for a DT, i.e. the DT has been invalidated. This suggests that the copper price will move higher from here on, that global equities markets will move higher and the AUDUSD will move higher.
A 5-w move is interpreted, even though the price symmetry between waves 2 and 4 is poor, downgrading the quality (reliability) of the 5-wave move. A minimum target of 4.24 and an ideal or primary target of 4.31-4.36 result from the interpretation.
The expected scenario is:
1. Up move to 4.24, then a pullback to 4.19 to form Wave 4
2. Then a move up into 4.31-4.36 to form Wave 5
3. Then a pull-back to 4.00-4.05 to form the 786 RTC of the 5th wave.
To view the ATW Strategic Prep Video (originally from November 29, 2010) titled “AUDUSD HnS Local SnR_HG_5W” click HERE or visit the FNArena Investors Education section on the website.
All views expressed are Jerry Simmons's, not FNArena's (see our disclaimer).
Jerry Simmons has over 25 years of full-time trading experience. He is the senior partner and head mentor for the “Masters” Programme within the education system at New York based Advanced Trading Workshop (ATW). ATW recently set up shop in Australia through the establishment of ATW Australia (since mid-2010).
FNArena is pleased to have Jerry Simmons as a highly valued contributor to its service which aims at both educating investors and assisting them with their own market analyses.
The above mentioned videos can be accessed via the FNArena Investor Education section at https://www.fnarena.com/index2.cfm?type=dsp_minc_education)
About ATW Australia
Founded in June 2010, ATW Australia is a “one-stop-shop for all a trader needs to succeed”: quality education for new traders, superb advanced trading education, fast unfiltered data, a world-leading trading platform, customer oriented competitive brokerage, quality ‘Made in the USA’ specialized trading computers, trading magazines, and the all-important psychological mentoring and coaching for traders. The trading educational products are provided by the Advanced Trading Workshop, Inc. in New York, all other services are provided by a network of partners that were chosen based on their superior products and services in their specific field of expertise. FNArena is one such partner.
To learn more visit www.advancedtradingworkshop.com.au.
Technical limitations
If you are reading this story through a third party distribution channel and you cannot see charts included, we apologise, but technical limitations are to blame.
