Topside exhaustion at Psych level (Sell stop .73700)
Today we reached a key level for this pair at .74000 for the second time from the .55000 low in March. Despite the dollars weakness AUD was not able to push through .74000 and was immediately rejected. A rejection from this point aims for .72200 for the first retest. .73710 is this pairs exhaustion point established from the .55000 low. Exhaustion points are marked just under key psychological levels as the momentum slows down before retesting the psychological level. Within this pair, the exhaustion point prepares holders to take their profit while preparing sellers to find a perfect entry point. Once a close out below this .73710 exhaustion level occurs sellers will pick up the volume creating momentum.
To avoid a poor entry I am looking to place a sell stop at .73700 with TP 1 at at .72200. Consolidation will occur before pivoting or making a breach through .72200. Furthermore if .72200 is breach a retest of .70000 is likely.
There was a lot of sentiment towards a breach through .74000 but due to the inability to push through today while the dollar has been at its weakest tells me otherwise. This is a scenario where technicalities such as strong psychological levels rule over clear fundamentals which in this case would be in AUD favor.
Attached is my sell idea earlier in the weak where I marked my sell point at .73700 which remains my current sell stop. Consolidation at the exhaustion point occurred for several hours before reaching for .74000 which is a strong indication that trend sentiment was reversing.
Please comment with thoughts and ideas. Thank you 🙏
To avoid a poor entry I am looking to place a sell stop at .73700 with TP 1 at at .72200. Consolidation will occur before pivoting or making a breach through .72200. Furthermore if .72200 is breach a retest of .70000 is likely.
There was a lot of sentiment towards a breach through .74000 but due to the inability to push through today while the dollar has been at its weakest tells me otherwise. This is a scenario where technicalities such as strong psychological levels rule over clear fundamentals which in this case would be in AUD favor.
Attached is my sell idea earlier in the weak where I marked my sell point at .73700 which remains my current sell stop. Consolidation at the exhaustion point occurred for several hours before reaching for .74000 which is a strong indication that trend sentiment was reversing.
Please comment with thoughts and ideas. Thank you 🙏
