A flow of highs/lows has consistently being formed from the 1.97000 psych region towards the downside, we can look at current price action as a retracement (lower high) pattern formed which has bounced and tapped our downside trendline in confluence with wick rejections around the fib regions. A new leg could be formed and the price could be heading towards...
Observe and pending price action confirmation, short AUDJPY around 74.640 with an aggressive stop at 74.750 (or conservative stop at 75.200) targeting profits at TP1: 73.000
Overall LONG trend on the pair that needs to be supported by a short-term sell for the rally to continue to the upside.
Market printed a 'W' formation on the Weekly and the SHORT is based on the retracement to the neckline of the structure.
Confluence is further supported by an increase in LONG contracts of Hedge funds in Canadian Dollar, strengthening CAD...
The chart made a reversal pattern which acted as a retracement in the impulsive leg .the pattern has three touch and formed another pattern to signify the next move to the downside .it gave us the pattern inside the pattern .
I would like to hear anything from you as we can share ideas