ICmarkets
Short

Final T.P hit at 0.7241 - Anyone looking to short now?

FX:AUDUSD   Australian Dollar/U.S. Dollar
142 3 2
For those who have been following the Aussie report over the past few days, you may recall that our team placed a pending buy order at 0.7150, which was filled nicely on Tuesday. Partial profits were taken just beneath the 0.72 handle and, thanks to yesterday’s push higher, our position was closed at the final take-profit line – a H4 resistance at 0.7241. Well done to any of our readers who profited from this move!

Pushing forward, here is how we see this market right now:

• Weekly price is bouncing from weekly demand at 0.7108-0.7186, and has the potential to rally back up to retest weekly supply drawn from 0.7438-0.7315.
• Daily action is now seen kissing the underside of a small daily supply area at 0.7259-0.7226.
• The H4 chart shows an AB=CD bearish pattern formed on approach to the above said H4 resistance line. Additional confluence is seen from a converging upper H4 channel resistance taken from the high 0.7402.

Our suggestions: Given the confluence seen on the H4 chart, along with daily supply (see above), we feel a short from the 0.7241 is something to consider today. However, owing to the weekly picture showing demand currently in play (see above) there’s still a risk that, despite the H4 confluence, price could continue to rally higher. Therefore, we would highly recommend only taking a short trade around 0.7241 if you see bearish strength forming on the lower timeframes. For us this would be either a demand engulf and subsequent retest, a trendline break/retest or a collection of selling wicks around either the higher-timeframe level itself or a minor lower-timeframe resistance.
OOPS! my comments are for different currency.
Reply
Though I am in agreement to you analysis but at the same time it is bouncing off the long term support.
Reply
It is a catch 22 situation.
Reply
United States
United Kingdom
India
Deutschland
España
France
Việt Nam
Italia
Polska
Brasil
Россия
Türkiye
Indonesia
Malaysia
日本
한국
简体
繁體
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing Support Priority Support Report Issue Ideas Published Followers Following Private Messages Chat Sign Out