Tom is a duffer...!

As I write, Tom is slaving over a self fladgilating diatribe concerning his dire trading of last week. When he gets around to it, he actually has a really solid trade recommend on NZDJPY (or as we call it, the NINJA).

So, with so little happening on the Sterling pairs, I thought I'd go for AUDUSD .... or the DINGO.

This pair has been stratospheric for the past 2 weeks and as we know, what goes up must come down !

Let's look at a chart
You can see that Dingo has left its senses, departing its baseline and accelerating upward in a bid to make it back to Mum (it's Daily 800 sma).

But will it make it all the way without another turn of the handle ? I would be surprised ....

So, with that in mind, let's home in a little...

As you can see, it's just bounced off it's steepest trend line on the 1H chart, but momentum is ebbing away...

So what might we do about this ? Let's look tactically....

On this chart I love the way the less steep rising support mirrors - exactly - the 1H 800 sma.

This is enough for me.

If we get a convicted 1H close below the steepest rising support line, I'm going to enter a small pilot position. A break of the red horizontal support line will encourage me to commit more fully.

My profit target will be the 1H 800 sma, currently at 0.7777.

....By the way, Tom still has some way to go on his self flagilation, but his Ninja setup is equally solid for similar reasons.