151119-181119 audusd NOPRONOLO

As you can see, the pattern formation is not a typical one. There is also another reason why I pulled out of this trade, which is discussed in the next chart

The area highlighted is the region where AUDUSD diverted from EURUSD. Even when EURUSD hit 423%, this pair didnt move. Since USD is a dominant currency, this signifies that EURUSD moved only because of EURO strengthening. This can also be seen in the pair EURGBP which has been in a long downtrend and showed a sign of reversal during this side way movement of AUDUSD. Therefore I pulled out of the trade before the pair lost its steam.