Hello Traderz,
For the coming weeks, AUDUSD has a few possible directions it could head to.
Scenario 1: If Monday retraces back up a little bit, I would look for a short entry on a lower timeframe on Tuesday.
Scenario 2: If Monday ends with a red candle then it would be too late to short and I would just wait till price hits the yellow zone.
Scenario 3: If Monday ends with a big green candle (unlikely) and enters the red zone then I would just wait till price bounces back down from it then take a short position.
Scenario 4: If it doesn't bounce back from the red region and goes to the red line, then I'll take a short when it comes back down or a long when it passes through the red line and retests it.
Overall I'm bearish on this pair but it's too early to tell.
Happy Trading everyone!
For the coming weeks, AUDUSD has a few possible directions it could head to.
Scenario 1: If Monday retraces back up a little bit, I would look for a short entry on a lower timeframe on Tuesday.
Scenario 2: If Monday ends with a red candle then it would be too late to short and I would just wait till price hits the yellow zone.
Scenario 3: If Monday ends with a big green candle (unlikely) and enters the red zone then I would just wait till price bounces back down from it then take a short position.
Scenario 4: If it doesn't bounce back from the red region and goes to the red line, then I'll take a short when it comes back down or a long when it passes through the red line and retests it.
Overall I'm bearish on this pair but it's too early to tell.
Happy Trading everyone!
Comment:
Market hit the red zone, taking a short here would be a low risk trade but with the signs of weakening the USD is showing, I would not open a position until next week.
