I am already short AUDUSD, I was assuming that the pullback marked a-b-c circled, would be the extent of the pullback and the pair would then move to a new low. However as is often the case the price action seems to be tracing out a larger pullback where the a-b-c was just the first leg of a larger move higher. This larger move labelled blue W-X-Y is forecast to end in the green box, should it get there I will sell again on entry to the box allowing for a stop loss just above it. In many respects, this larger pullback seems a better fit as it re-traces about 50% of the previous down wave and will terminate in the vicinity of the wave 4 at a lower degree.
Thats all quite technical but the basics remain the same, AUDUSD appears to be in a confirmed downward trend and I will take opportunities to sell each pullback until the trend breaks. You never know for sure how big a pullback is going to be but with careful risk management and attention to detail you can limit risks when you are wrong. In this case, even if the first trade is wrong I have zero risk as the stop is already at breakeven. I will put a link to the earlier trade below
Thats all quite technical but the basics remain the same, AUDUSD appears to be in a confirmed downward trend and I will take opportunities to sell each pullback until the trend breaks. You never know for sure how big a pullback is going to be but with careful risk management and attention to detail you can limit risks when you are wrong. In this case, even if the first trade is wrong I have zero risk as the stop is already at breakeven. I will put a link to the earlier trade below
Order cancelled:
AUDUSD has made a new low cancelling this idea. The original trade linked below has met its first target 2:1.
I will be looking to sell the next pullback and will continue selling until the bearish trend fails.
I will be looking to sell the next pullback and will continue selling until the bearish trend fails.
