pavan15589
Short

AUDUSD - Consolidating Channel - Short to join the Trend

FX:AUDUSD   Australian Dollar / U.S. Dollar
The pair after a strong move down has been in a corrective consolidation forming an ascending channel . If anything this pattern tells us is that the pair is not finished picking its bottom.
Also, looking closely at the price action on the 4 hour chart, we can observe the evident struggle on the pair already with more rejections from the top as it reaches the 38% Fibonacci Retracement of the last leg down. Also looking back, we can also observe a strong consolidation at the the same Fibonacci level.
What to expect?...
We could see a weakening price action as pair approaches the 38% retracement and eventually see a strong reverse ultimately falling back in trend.
A short at this level upon confirmation would put us on a long ride down for days to come until the next closest support is reached for a small profit taking around .79900 before breaking and continuing with the trend, which proves to be a great reward considering the risk on the trade.
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