AUDUSD POTENTIAL SHORT FORMATION IN PROGRESS
When we zoom out on the higher time frames, we can see that the pair is in a strong downtrend
despite the bullish correction in the daily time frame which lasted a few days.
We have listed various reasons which support our bearish basis.
1: Monthly time frame trend suggests a strong downtrend.
2:Price failed to break the lower high formed on the 4th of April 2023
3:Trendline like breakout
4: Ascending triangle breakout
We will wait for price to correct on the lower time frames before looking for an entry.
We need the trade to be a minimum of 1 to 3 risk reward before we consider looking for
an entry.
despite the bullish correction in the daily time frame which lasted a few days.
We have listed various reasons which support our bearish basis.
1: Monthly time frame trend suggests a strong downtrend.
2:Price failed to break the lower high formed on the 4th of April 2023
3:Trendline like breakout
4: Ascending triangle breakout
We will wait for price to correct on the lower time frames before looking for an entry.
We need the trade to be a minimum of 1 to 3 risk reward before we consider looking for
an entry.
Comment:
Price has pulled back quite aggressively today. This signals start of a bullish correction on the lower time frames. We plan to continue monitoring price for the next few days and will look for an entry if the risk reward is as per our trading plan.
Comment:
Setup has formed. Risk reward is too low so we have decided to skip this trade and wait for the next setup.
Comment:
Target reached, despite us not taking the trade due to risk reward.