AUD/USD: Double Top Pattern formed!
What’s up guys and welcome to my profile, my name is Gianni and today I’m going to analyse the AUD/USD, trying to translate the market information with a full technical analysis on different time frames perspectives.
For a better understanding of my bearish idea, have a read of my previous analysis:
Before focusing on the 1 hour chart, let’s have a quick recap on the 4h timeframe:
The market retraced back after a strong bearish impulse, getting a double rejection on the area around the 0.50% of Fibonacci.
The price is currently retesting a local support turned now into a resistance level, with a possibility to see a trend continuation, considering an overall downtrend.
Back to the 1 hour chart:
The market formed a double top pattern just around a strong resistance level, getting a clear rejection to the downside.
A responsive movement pushed the price back to a local S/R level and it’s currently retesting that area.
Considering a great responsive movement, translated with buy order positions around the level 0.71000, I would expect some consolidation before, eventually, a trend continuation.
Before to plan my short position on this market, I will be waiting for a clear bearish price action with a RRR of 1:2 or greater.
A breakout to the upside of the local S/R zone, will invalidate my trade setup and no action will be taken on this market.
If you enjoy this trade idea, support my work with a thumb up and don’t forget to follow my profile for more detailed technical analyses!
Trade safe and responsibly,
Gianni
DISCLAIMER
Please note the views are not investment advice and should be used only for educational purpose
For a better understanding of my bearish idea, have a read of my previous analysis:
Before focusing on the 1 hour chart, let’s have a quick recap on the 4h timeframe:
The market retraced back after a strong bearish impulse, getting a double rejection on the area around the 0.50% of Fibonacci.
The price is currently retesting a local support turned now into a resistance level, with a possibility to see a trend continuation, considering an overall downtrend.
Back to the 1 hour chart:
The market formed a double top pattern just around a strong resistance level, getting a clear rejection to the downside.
A responsive movement pushed the price back to a local S/R level and it’s currently retesting that area.
Considering a great responsive movement, translated with buy order positions around the level 0.71000, I would expect some consolidation before, eventually, a trend continuation.
Before to plan my short position on this market, I will be waiting for a clear bearish price action with a RRR of 1:2 or greater.
A breakout to the upside of the local S/R zone, will invalidate my trade setup and no action will be taken on this market.
If you enjoy this trade idea, support my work with a thumb up and don’t forget to follow my profile for more detailed technical analyses!
Trade safe and responsibly,
Gianni
DISCLAIMER
Please note the views are not investment advice and should be used only for educational purpose
