AUD/USD AB=CD TRADE SETUP
Updated
SUPPORT @ .7650 HELD BETWEEN 3/28/18 ALL THE WAY TO 4/9/18, MAKING THIS A STRONG KEY LEVEL OF SUPPORT FOR A WEEK, WITH MULTIPLE REJECTIONS OFF OF THIS LEVEL. THIS PAIR FORMED A STRONG BEAR CANDLE SMASHING THROUGH THE SUPPORT LEVEL ON 4/23/18, MAKING IT A NEW KEY LEVEL OF RESISTANCE. POSSIBLE AB=CD TRADE SETUP. AWAITING BULLISH PRICE ACTION TO REACH 61.8% FIB LEVEL TO RETEST THIS RESISTANCE LEVEL .76500, WHICH WOULD FORM A NEW LOWER HIGH AS WE AWAIT PRICE TO REACH .7300's TO COMPLETE THE AB=CD TRADE. THIS PAIR COULD NET A POSSIBLE 350 PIP TRADE.
WHAT IM THINKING OF DOING:
1) EITHER WAIT FOR PRICE TO REACH .7650 (61.8% FIB LEVEL) AND LOOK FOR STRONG BEARISH MOVEMENT TO SHORT FROM THERE, OR;
2) EXECUTE SELL LIMIT @ .7650
SIMPLE TRADE. STOP LOSS @ LARGE QUARTER .7750 AND TAKE PROFIT @ .7300 D EXTENSION.
WHAT IM THINKING OF DOING:
1) EITHER WAIT FOR PRICE TO REACH .7650 (61.8% FIB LEVEL) AND LOOK FOR STRONG BEARISH MOVEMENT TO SHORT FROM THERE, OR;
2) EXECUTE SELL LIMIT @ .7650
SIMPLE TRADE. STOP LOSS @ LARGE QUARTER .7750 AND TAKE PROFIT @ .7300 D EXTENSION.
Trade active
THE BC LEG OF THE BEARISH AB=CD PATTERN IS COMPLETE. THE DAILY CLOSE FOR TODAYS CANDLE DID NOT CLOSE ABOVE .7650 RESISTANCE AND TO ME THAT MEANS BUYERS GAVE UP AT THAT LEVEL, SO IM PROJECTING BEARISH MOVEMENT TO SNOWBALL INTO THE D LEG.Note
STOP LOSS MOVED TO .7730 INSTEAD OF .7750TAKE PROFIT @ .7300
Trade closed manually
CLOSED TRADE MANUALLY AS IT SEEMS WE COULD BE HAVING A DEEPER PULLBACK.
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