lionpridefx

AUDUSD Short Forecast 08/26

Short
lionpridefx Updated   
FX:AUDUSD   Australian Dollar / U.S. Dollar
Price is rejecting higher TF resistance and forming a bearish engulfing candle as the hour closed. This tells me we may see short term retracement before continuing upwards. Considering bull momentum exhausted after 2 wave impulses, we could see price break below .7200 and close below confirming the overall uptrend has ended.
Comment:
Price rejected resistance twice on 4H TF, and w/ such a strong bullish impulse, we can now expect price to fall to a level of support to be retested.
Scenario A: Price breaks above resistance and retests w/ rejection for further upside.
Scenario B: Price comes back up to retest resistance again and rejects w/ a strong bear candle fully formed/closed for further downside.

Carefully watching what happens at 0.7205 area support either way. If price breaks below and closes w/ multiple confluences will enter shorts and vic versa for longs. Long term I will be looking for long opportunities and will be looking for RSI divergence short term.

Thanks for viewing! Please give this post a thumbs up if you found this information useful. Comment below if you'd like to share your opinion!
Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.