Description
⋅ AUDUSD Neutral Idea
Weekly Trend: Bearish
Daily Trend: Bearish
4Hour Trend: Bearish
Trade scenario 1: Overall we are clearly bearish but we can see that we are also very over extended.
Price action is currently resting at support near 0.70000 and how it reacts here will determine where we go next.
Ideally, we can get a reversal near 0.70000 then wait for the next structure forming lower high, then we can enter short.
Keep in mind price action could pull back to our 61.8% level & 0.71200 resistance.
Trade scenario 2: For us to consider AU bullish we would need to see a 4hour transition meaning a higher low above 0.72000.
This transition will declare the 4hour timeframe bullish but we could also identify lower timeframe long opportunities if they present themselves.
Look to buy into resistance near 0.71200 (this will be a counter trend trade if you take it)