Here we have a bearish bat
on the aussie-dollar. If look at the chart on a larger scale, daily or weekly, you can see that price is in a down trend. Price is currently pivoting along a line of support- this should act as resistance for the retracement. This gives us extra ammo in our reasoning for the short entry. Our first 2 retracements of 50% and 59.7% indeed give the indication of a bat OR a crab pattern
. Looking at the trend and resistance, i expect price to drop at the 88.6% retracement
. If the candles do not show a reversal and price breaks through resistance, I will continue to look for a short entry at the 161.8% level. Interest rates are expected to be hiked by the FEDin December; this may add to the Dollar strength! Higher time frame chart below for illustration.
AB: 0.382 OR 0.5