Of course AUDUSD is in freefall mode, but we're due for a relief rally before we head even lower.
A collection of fib extensions/inversions have joined concert at around the .7500 even handle. We can reasonably expect that once price action approaches this area, that RSI will go oversold, and will also display bullish divergence at this time.
Bear in mind (No pun intended) that the Reserve Bank of Australia rate decision comes out on July 7th, and can either propel or reject this temporary move upward during this swing trade.
We are anticipating that once price heads upwards at around the .75 even handle we can expect the rally upwards into the neighborhood of .75783 where there was previous structure support that will become resistance, before the overall bearish trend resumes.
As the market opens up near the end of the weekend, we can also take into account the possibility of a market gap, which may negatively impact the execution of the trade. However, the lovely aspect to this trade is the FIVE TO ONE reward to risk ratio. Sorry, but I can't say no to that! Using a single contract and stops will roll to break even once we're halfway to target. Problem is, there is no structure anywhere near the reversal zone, so stops WILL BE TIGHT (About 1 ATR), because if I'm wrong, I'd like to get out of this quickly. But fear not, as price action strongly indicates to me that it's running out of steam and needs to take a breather before it shoots down lower.
A collection of fib extensions/inversions have joined concert at around the .7500 even handle. We can reasonably expect that once price action approaches this area, that RSI will go oversold, and will also display bullish divergence at this time.
Bear in mind (No pun intended) that the Reserve Bank of Australia rate decision comes out on July 7th, and can either propel or reject this temporary move upward during this swing trade.
We are anticipating that once price heads upwards at around the .75 even handle we can expect the rally upwards into the neighborhood of .75783 where there was previous structure support that will become resistance, before the overall bearish trend resumes.
As the market opens up near the end of the weekend, we can also take into account the possibility of a market gap, which may negatively impact the execution of the trade. However, the lovely aspect to this trade is the FIVE TO ONE reward to risk ratio. Sorry, but I can't say no to that! Using a single contract and stops will roll to break even once we're halfway to target. Problem is, there is no structure anywhere near the reversal zone, so stops WILL BE TIGHT (About 1 ATR), because if I'm wrong, I'd like to get out of this quickly. But fear not, as price action strongly indicates to me that it's running out of steam and needs to take a breather before it shoots down lower.