AUD/USD: Reversal Sell Opportunity Confirmed!!!
On November 29 and 30, AUD/USD touched a crucial pivot point at the price of 0.66411, indicating a potential change in direction, especially as it aligns with a level of miring Support and Resistance, suggesting a Major downtrend. The bearish reversal signal on the daily candle following the pivot point touch adds confidence to the potential downturn. The recent dovish stance conveyed by the Reserve Bank of Australia (RBA) further adds pressure on AUD/USD.
Technical Analysis:
Pivot Point and Support/Resistance: The price hitting the pivot point at 0.66411 suggests a potential reversal, particularly at the miring Support and Resistance level.
Bearish Reversal Signal: The formation of a bearish reversal pattern after touching the pivot point indicates weakness in the bullish momentum.
Major Downtrend: The trendline illustrates that AUD/USD is currently experiencing a Major downtrend.
Fundamental Analysis:
Dovish RBA Stance: The dovish statement from the RBA can enhance the downward pressure on AUD/USD.
Trading Scenario:
Considering the above factors, traders may contemplate the following scenario:
Wait for Correction: Exercise patience until the price undergoes a correction from the 0.66411 level.
Sell Limit with Confirmation: Initiate a sell position after a correction, with confirmation of further downside. Confirmation could involve the formation of a bearish pattern.
Target Take Profit: Set a take profit target around 0.64660, an area indicating the potential for further decline.
Stop Loss: Safeguard the position by placing a stop loss above the nearest resistance level or above the high of the confirmation candle.
It's crucial to continuously monitor market conditions, stay informed about the latest news, and practice prudent risk management. Trading always involves risks, and the final decision remains the responsibility of the trader.
Technical Analysis:
Pivot Point and Support/Resistance: The price hitting the pivot point at 0.66411 suggests a potential reversal, particularly at the miring Support and Resistance level.
Bearish Reversal Signal: The formation of a bearish reversal pattern after touching the pivot point indicates weakness in the bullish momentum.
Major Downtrend: The trendline illustrates that AUD/USD is currently experiencing a Major downtrend.
Fundamental Analysis:
Dovish RBA Stance: The dovish statement from the RBA can enhance the downward pressure on AUD/USD.
Trading Scenario:
Considering the above factors, traders may contemplate the following scenario:
Wait for Correction: Exercise patience until the price undergoes a correction from the 0.66411 level.
Sell Limit with Confirmation: Initiate a sell position after a correction, with confirmation of further downside. Confirmation could involve the formation of a bearish pattern.
Target Take Profit: Set a take profit target around 0.64660, an area indicating the potential for further decline.
Stop Loss: Safeguard the position by placing a stop loss above the nearest resistance level or above the high of the confirmation candle.
It's crucial to continuously monitor market conditions, stay informed about the latest news, and practice prudent risk management. Trading always involves risks, and the final decision remains the responsibility of the trader.
Disclaimer
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