AUSTRALIAN DOLLAR

Today's MARKET STATE AUSTRALIAN DOLLAR **BEAR TREND**
- Technically the MKT is vulnerable to the offer. On the SELL side accept all BREAKOUT, FADE and REVERSAL signals. The MKT is on edge and any negative signal, especially below the previous session high, is an opportunity. Anticipate a price "zone" around a major resistance point to FADE. Have a plan and be ready. If your stop gets hit and the MKT does not immediately follow through, consider re-entering, even doubling up if there is structure to define low risk.
- On the BUY side REVERSAL strategies can be executed off of major support levels but preferably after an emotional sell off. This is an aggressive strategy and any profits should be realized at the previous support failure points. Avoid DP FADE BUYS even with confirmation, as this is more likely a plateau for a BREAKOUT SELL strategy. UP BREAKOUT strategies are not recommended but do have a better chance of succeeding than a DP FADE.

Today's PRICE MAP Performance for DA

Wrap Up

The AUSTRALIAN DOLLAR futures did NOT perform to expectations in a BEAR TREND market environment today; however, by utilizing our OPTIMAL HEDGE TACTIC, JS Traders were able to capitalize on the "sloppy" trading session.  The market played host to a substantial sell-off during the overnight session, sending prices below our expected level of Support at the DP.  If the MKT was going to follow through on the DP BREAKOUT signal, it should take out the minor level at 1.0195 and continue to build negative structure.  The market found support at the 1.0195 minor level and proceeded to digest around the DP for the remainder of the overnight / early morning session.  The rally that began around 3 am CT produced a new high and signaled a BREAK in the negative structure.  This signal alerted JS Traders that the probability for a sideways, choppy session was high.  As a result, momentum oscillator tactics should be utilized to confirm trading opportunities.  At 5 am CT, the market made a final push to the upside, falling short of the UP, and allowing JS Traders to execute a SELL UP FADE strategy with confirmation in the form of RSI BEARISH DIVERGENCE.  This strategy proved profitable as the market failed to re-test the highs and maintained negative structure throughout the entire move down to the DP at 11:30 am CT.  Identifying MARKET STATE, STRUCTURE and STRATEGY helped traders identify the opportunity today in the Aussie Dollar.