AUDCHF - Bearish Engulfing
Updated
AUDCHF has formed a significant bearish engulfing on the daily time frame at a very strong support level. A very strong upper Bollinger Band outbreak indicates that the uptrend was over-extended. Clear RSI divergence indicates that the uptrend became very weak and is due for a reversal to the downside. I have entered at the open of the 9/22 daily candlestick after a slight pullback. This trade setup is very similar to AUDJPY. Both pairs formed significant bearish engulfing candles with very strong Bollinger Band outbreaks, and RSI divergence. AXY (Australian Dollar Index) also shows RSI divergence and heavy selling pressure. . SL set above previous highs. TP set slightly above previous support, which is now resistance. I will close this trade upon the close of an opposing, significant bullish engulfing candle.
Note
Still holding. Price closed below the middle Bolinger Band (20 SMA). I am now waiting for a break of the thin resistance line.Note
Currently 244 pips in profit. Resistance was broken and price is dropping quickly. Another bearish engulfing pattern has formed. I will continue to hold.Note
Price is currently breaking out of the upper Bollinger Band which means that the short term up-trend is over-extended and is ready to reverse.There is an opportunity to start impulse wave 5.
I will enter short again on this pair if a significant bearish engulfing pattern is formed in the next few days.
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