AUDUSD W1 over bought and diverging

FX:AUDUSD   Australian Dollar / U.S. Dollar
Fed QE hopes has provided a good opportunity to short the AUDUSD .
2 weeks ago price closed just below the upper trend line from 24/7 and 5/2 with a candlestick doji followed by a bearish engulfing candle.
ADX is showing no trend so use of the Stochastics indicates overbought levels with bearish divergence, further supporting this trade.
I have personally taken a short position @ 1.052 with a stop @ 1.064 which is above the 3 week high and trend line resistance.
My target is @ 1.028 where we have 20,50,100 SMA confluence providing a R/R of 1:1.85
Second and Third targets would be at parity and the lower trend line respectively.


The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.