AUDUSD is approaching a good level to sell. Currently, a classic bearish reversal pattern is in the midst of its formation. Once price breaks this lower channel of the pattern, a bearish bias is confirmed. Furthermore, if price were to move towards the upside, a bearish divergence would form. This further substantiates the bearish bias that we have for AUDUSD .
There are 2 possible entry level depending on how risk-averse you are. For risk-averse traders, only enter when price breaks the lower channel. For less risk-averse traders, you can entire at the peak of the upper channel. The entry level I have set in this analysis is at 0.7.
Stop-loss will be at 0.715. This is an area above our channel resistance where a second resistance zone is at. This allows for room for the trade to run.
Take-profit is at 0.66777. This is at an area of support. As usual, once our trade arrives at >25% to 30% of our profit target, we will move stop-loss to entry, set a trailing stop loss, and let the trade run.
If this analysis has helped you in making an informed trading decision, do give it a huge thumbs up! :)
There are 2 possible entry level depending on how risk-averse you are. For risk-averse traders, only enter when price breaks the lower channel. For less risk-averse traders, you can entire at the peak of the upper channel. The entry level I have set in this analysis is at 0.7.
Stop-loss will be at 0.715. This is an area above our channel resistance where a second resistance zone is at. This allows for room for the trade to run.
Take-profit is at 0.66777. This is at an area of support. As usual, once our trade arrives at >25% to 30% of our profit target, we will move stop-loss to entry, set a trailing stop loss, and let the trade run.
If this analysis has helped you in making an informed trading decision, do give it a huge thumbs up! :)
Comment:
Price is still respecting the channel I have drawn. Will likely wait until when the price rejects the upper channel or when there's a violation of the channel!
