AUDUSD - 1H to D Time Frame - Short Opportunity
AUDUSD has had a key technical break on the 1 hour chart. This trade has visibility on 4 Hour and Daily Time frames as well. I've gone ahead and labeled some events in alphabetical order, I'll walk you through a trade opportunity that happened during yesterday's trading and segue it right into the new opportunity we have before us.
A. 1 Hour Trend line Support, with many touches highlighted in yellow you can clearly see that the market was reacting to this level each time it hit it.
B. This is our first Key Technical Break - after identifying a Support/Resistance line that the market is adhering to this kind of break is a "Red Flag" so to speak of a trade in development.
C. Old Support becomes New Resistance - This is the trade opportunity that was created with the key technical break, look for bearish price action.
D. AUD News early in Tuesday's trading pushed the pair under a key technical level visible up to the daily chart. "Red Flag"
E. This is where we are currently, a trade has been flagged and is in development - Looking for Bearish Price Action at this broken level to enter into a sell opportunity.
Pending Sell Limit at .7160 or Manual Entry, whichever you prefer
Stop Losses placed at .7210 - above the most recent high and within the triangle
Profit Target at .7085 and .7025 - I used previous length of break down to determine these targets, although watch for obvious support walls that are created
4 Hour Chart to see the bigger picture-
As always please do your own analysis before deciding to enter a trade, and any comments, questions, concerns and feedback are greatly appreciated.
A. 1 Hour Trend line Support, with many touches highlighted in yellow you can clearly see that the market was reacting to this level each time it hit it.
B. This is our first Key Technical Break - after identifying a Support/Resistance line that the market is adhering to this kind of break is a "Red Flag" so to speak of a trade in development.
C. Old Support becomes New Resistance - This is the trade opportunity that was created with the key technical break, look for bearish price action.
D. AUD News early in Tuesday's trading pushed the pair under a key technical level visible up to the daily chart. "Red Flag"
E. This is where we are currently, a trade has been flagged and is in development - Looking for Bearish Price Action at this broken level to enter into a sell opportunity.
Pending Sell Limit at .7160 or Manual Entry, whichever you prefer
Stop Losses placed at .7210 - above the most recent high and within the triangle
Profit Target at .7085 and .7025 - I used previous length of break down to determine these targets, although watch for obvious support walls that are created
4 Hour Chart to see the bigger picture-
As always please do your own analysis before deciding to enter a trade, and any comments, questions, concerns and feedback are greatly appreciated.
Trade active:
First Target Hit - SL to Breakeven - Let it ride
Trade closed manually:
The current price action is hinting very strongly at a rise back to our initial entry levels. Closing the trade and taking total profit now.