AUDUSD - Short Setup

Here's another setup - this time i've included RR.

Although AUDUSD is breaking to the downside fast there is still a very good chance it will re-test resistance @ 0.71347.

And with strong momentum it shouldn't get to far passed support other than to perform a shakeout pattern unless there is bullish momentum coming which would invalidate the call.

Due to this I can have a tight stop just above the smallest and most recent passed structure @ 0.71625.

This looks like a clear 1:1 which projects to 0.69127 and it will probably overshoot if it gets there.

So just the log based 1:1 with no consideration of overshoot or consideration of holding longer term is 7.37 RR ratio.

And I have set my limit entry to 0.7133, just shy of passed resistance and previous continuation pattern - in case there is front run shorting in that area.

If it isn't filled nothing lost and I am already short anyhow.

This setup allows another entry with risk management and greed avoidance.

Not advice.

Comment:

This has turned quickly and looking quite impulsive so i've exited and will wait for bearish momentum.

Comment:

Also note RSI divergence and looking like a wyckoff bottom potentially.

Comment:

Some development and an Evening Star has printed with a wicked shakeout pattern piercing the 1:1 and good chance revealing rejection which may see a further wave down to continue this devastating trend. Re-entered short with stop above the star.