Today we might get some opportunity to enter the market with some short setup forming already on AUDUSD pair. This is a medium trade which means if we enter this trade, it will last around 2-3 days since from my point of view, I spot this opportunity from the 4H.
First let’s us see the weekly chart. We see that after a nice run to the upside, a shooting star has finally forming. This is last week’s candle. What does this means? well, to me it is means that the nice run up has finally begin to loss some strength and the momentum has begin to change to the downside.
Second, if we look at the 4H chart, There is Head & Shoulder pattern or 1-2-3 pattern forming on this medium time frame. This adds some more sureness for me to seek for the short entry on this pair. Not to mention, if we zoom in to look for more clues, we can see that this pair is definitely on bearish trend currently, price is rejected at an area where previous highs and lows forms, also at around this area, there is a weekly pivot point there.
From the lower time frame, the 15 minutes, we can see that price rejection happens quite many times at around these levels and also my MA’s study tells me that trend is also begin to show itself because the MA’s is widening from each other.
If you are into this trade, you can try to put your stop loss at around 0.99000 and take profit 1 at yesterday’s low 0.96628 and take profit 2 at 0.96017
Winner’s Edge Trading, as seen on: