Zeheart

Price Rejection to 1.050 Level, Poss. Short+Butterfly Formation

FX:AUDUSD   Australian Dollar/U.S. Dollar
338 7 0
I see a possible early forming Bearish Butterfly Pattern. At the moment i can't confirm very much on the harmonic pattern as in its too early to say so. Instead I am purely using the pattern shape to gauge the possible price movement and use Price Action to further determine on the possible entry position.

As of the chart, we see that price have been rejecting 1.050 for twice. so thats why Last Week I took my short. And looking at last friday's bar, price actually punch thru the next support level @ 1.0365 and it closed back up to the support level . if Monday's Candle can close below the support level & able to reject both the EMAs that will be probably a good continue shorting signal.
Apart from Continuing Signal for Shorting as per mentioned above, it also has a possibility which the support line will hold and PA shows sign of long trade. We will have to see how Monday's Candle perform prior entering any trade..

Cheers!!
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This might be your best pair. You've been most accurate with the Aussie
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really like ur chart!
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that about matches gold/silver. AUDUSD usually correlates well with gold/silver
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Fiboholic QuantitativeExhaustion
thats rite!
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I agree with your chart for the most part. I posted an AUDUSD chart showing the same pattern emerging, I took my fib measurements using 2013 high and the base of the candle formed on 3/4/13, since most of the candle is noise. Measuring this way causes a confluence of fib support at the 1.034 level, so a short below 1.0365 may be short lived.

Also, shorting before the completion of the pattern maybe risky.

Finally, if you are seeing a butterfly form, where are you projecting your point "D"

Other than that, very good chart, and good catch on the pattern. I thought I was the only person noticing that pattern form here on tradingview.com
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matt_forex matt_forex
snapshot


Here is the chart
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