AUDUSD: Shorting Opportunity at Area of Massive Confluence!
FACTORS OF CONFLUENCE
+ With overall bearish sentiment.
+ Rejection of 200 EMA.
+ 200 EMA converges with 50% Fibonacci retracement from the last swing from 0.79358.
+ Coincidence of the yearly, weekly, and monthly pivot lines being in the same area as the above confluences.
+ Price forming a bearish wedge continuation pattern.
+ Double top from the two candles on the 8th of April.
+ Deceleration of price and consecutive pinbars on the daily chart.
+ Fundamentally the Aussie economy isn't doing too well and rate cuts are expected in the future.
+ To top it off we have two high test candles rejecting this area of massive confluence.
Look for confirmation at the close of the day. If we get that nice pinar we can then look to get short with stops safely above the highs.
AREAS OF POTENTIAL SUPPORT TO LOOK OUT FOR
+ 50 EMA acting as potential minor support.
+ Weekly pivot support at the 0.763 area.
+ Psychological support at the 0.76 area.
+ Monthly + Yearly Pivot support at the 0.755 Area.
As usual this is not guaranteed to occur and as traders we are expected to use our own analysis to further confirm our decisions. Happy trading!
+ With overall bearish sentiment.
+ Rejection of 200 EMA.
+ 200 EMA converges with 50% Fibonacci retracement from the last swing from 0.79358.
+ Coincidence of the yearly, weekly, and monthly pivot lines being in the same area as the above confluences.
+ Price forming a bearish wedge continuation pattern.
+ Double top from the two candles on the 8th of April.
+ Deceleration of price and consecutive pinbars on the daily chart.
+ Fundamentally the Aussie economy isn't doing too well and rate cuts are expected in the future.
+ To top it off we have two high test candles rejecting this area of massive confluence.
Look for confirmation at the close of the day. If we get that nice pinar we can then look to get short with stops safely above the highs.
AREAS OF POTENTIAL SUPPORT TO LOOK OUT FOR
+ 50 EMA acting as potential minor support.
+ Weekly pivot support at the 0.763 area.
+ Psychological support at the 0.76 area.
+ Monthly + Yearly Pivot support at the 0.755 Area.
As usual this is not guaranteed to occur and as traders we are expected to use our own analysis to further confirm our decisions. Happy trading!