AUD/USD Started its Trend Reversal - Perfect Time to go SHORT

In this technical analysis on AUD/USD I will walk you through the recent things that happened to this pair, and I will explain you why I think a short position is most suitable right now. Also, I will explain the most logical entry position, take profit and stop loss.

On AUD/USD we have seen a fantastic recovery since the corona low at the end of March. Within just 3 months it grew a staggering 27%. However, now that it has reached the 0.700 level again we do see clear resistance.

This is a logical place to expect resistance as the price showed resistance here as well before. Since the first small bounce already happened, we can now confirm this resistance level. Together with a double-top like pattern we can expect the price to decrease again.

This confluence of trend reversal and horizontal resistance creates a high probability entry for a short position here on AUD/USD. For the entry position I suggest to simply enter as soon as possible since we have already seen the confirmation of the resistance zone.

For the take profit, the most logical place to put your first target is around the .65000 level as this is where the price struggled earlier.

For the stop loss, I would suggest a place slightly above the current resistance, for instance around 0.71000.

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- Trading Guru

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Disclaimer!
This post does not provide financial advice. It is for educational purposes only!