The double top formation, which is circled on the left shoulder, is a major point of resistance and support on multiple points in the entire instrument. This point is also a 2.414 Fibonacci extension level. Also, on the 4 and 1 hour charts, there is a Deep Crab harmonic pattern, which would suggest a possible bullish rally. I will set my stop at 0.71206 since this is another strong level of former resistance. I will enter the trade upon opening, unless the market gives an aggressively bearish sentiment.
Trade active
AUDUSD bounced off the 2.414 line, just like we wanted it to! I grabbed a few pips here and there, and now have set up for the long haul. It may want to retest the 2.414, but all stops are in place. Small risk for a big reward.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.