AUDUSD Shorting top of two parallel channels.

FX:AUDUSD   Australian Dollar / U.S. Dollar
230 12 7
Hello Traders,

I was thinking about shorting AUDUSD             since the price has been rejected at this area multiple times. But if you look at the charts, it's forming two parallel channels. The first channel top is also 1.618 Fib level of 04/07 high and low.

But looking at the buying pressure of this pair, we may see a quick rally to the top of second channel.

I will be taking two half position short one at the top of first channel around 7730 another one will be at the top of second channel around 7775. I'm going to put my stop loss well above the top of second channel. My first take profit will be the center of the channel and second one will be bottom of the channel. Let's see how it goes.

Good Luck!
Comment: Nice 100 pip gap down so far, hope it will hold until the open of the market. Good for my AU,AJ short. "ALL HAIL OIL FREEZE FAIL"
i wouldnt do that.
Empty Empty
the trend is you friend and the sky has no limits in this example
Saravan Empty
Thanks for your comment. This pair's trend changed only recently when it broke out 7350 range(but still in downtrend in higher time frames). Yes, trend is the friend, but it doesn't mean the price will go up in a vertical line. Nobody can predict the future and where the price will go next. That's why we use stop loss. As a trader, all we can do is look for high probable set ups and trade with right money management. If this one doesn't work out, I will move on to the next one.
i wouldnt do that sir.
We are at .618 mate
Saravan ChimbOt
Well, I was taking about the extention of 12/04/2015 high and 1/15/2016 low ( look at the other chart in comment). in your chart price closed well above 61.8 level.
ChimbOt Saravan
from my experience , fib levels are not precise to the tee,
Saravan ChimbOt
True, especially a Friday price action.
ChimbOt Saravan
Introducing this chart as relation,
Heavy Bull divergence in dollar , break of TL and retest, 3 drive pattern, potential HS
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