AUDUSD Potential Short
As the US Dollar Index is pulling back into previous resistance turned support, the opposite is happening on the major pairs such as the EURUSD, GBPUSD, and here on the AUDUSD. I am still Long on the Dollar so I keep my bearish bias on the pairs just mentioned. Here on the AUDUSD we see price coming back up to previous support now turned resistance which also aligns with the 50 FIB level at .73300. I do not trade on Sundays so I will be looking at price action tomorrow or at the daily close tomorrow to see if price action confirms my intended move down. If price does confirm my move with price action (engulfing, pin bar, doji's, or just candles with wicks and shadows showing bullish weakness) then I will be entering short. My first target will be a weekly level at .71700 for a profit of 150 pips and my second target will be the next weekly level at .69000. Overall a potential profit of 420 pips on this trade. Going to keep my stop loss near the downward trend line but will confirm that tomorrow after daily close. Also because I will be holding this position for a few weeks I will be hedging Long after price moves 100 or so pips in my favor. As you can see my positions to go Long will be at the levels where price most likely will make a reversal. During these swing trades I like to capitalize on making money in both directions. Once my Long positions hit a level where price will move back down I will open another position so for this trade I am looking at many positions both long and short as you can see in the picture. Let me know what you think and thanks for reading!
As the US Dollar Index is pulling back into previous resistance turned support, the opposite is happening on the major pairs such as the EURUSD, GBPUSD, and here on the AUDUSD. I am still Long on the Dollar so I keep my bearish bias on the pairs just mentioned. Here on the AUDUSD we see price coming back up to previous support now turned resistance which also aligns with the 50 FIB level at .73300. I do not trade on Sundays so I will be looking at price action tomorrow or at the daily close tomorrow to see if price action confirms my intended move down. If price does confirm my move with price action (engulfing, pin bar, doji's, or just candles with wicks and shadows showing bullish weakness) then I will be entering short. My first target will be a weekly level at .71700 for a profit of 150 pips and my second target will be the next weekly level at .69000. Overall a potential profit of 420 pips on this trade. Going to keep my stop loss near the downward trend line but will confirm that tomorrow after daily close. Also because I will be holding this position for a few weeks I will be hedging Long after price moves 100 or so pips in my favor. As you can see my positions to go Long will be at the levels where price most likely will make a reversal. During these swing trades I like to capitalize on making money in both directions. Once my Long positions hit a level where price will move back down I will open another position so for this trade I am looking at many positions both long and short as you can see in the picture. Let me know what you think and thanks for reading!