AUDUSD Sell Setup
Here are the key things to note about this trade:
Weekly:
-we are bearish on the weekly.
-we actually picked up momentum toward the end of the month and printed a strong bearish momentum candle after 6-7 straight weeks of wicks to the upside on the weekly chart.
-this momentum candle is an indicator of orders getting filled and potential for more price action to push south.
H4:
-we broke structure to the downside on H4- but slightly. There is a shred of hesitation to heading farther down but the pair left us on a cliffhanger at the close of the April month.
NOTES:
-of great interest to me are two key lows: the April low which was printed on Friday (0.66736) and the March low (0.65643)- both of which remained untapped as we closed the month of April.
This trade is based on the premise that:
-we broke structure on the midrange (H1, if you will) to the downside, establishing a bearish picture at the week's open.
-we retraced to the 61.8% fib level and minor supply level that can be seen clearly on M15.
-Friday closed with a level of rejection at this minor supply
-the monthly lows at the aforementioned levels offer plenty of incentive for the pair to push into them
That being said, this is a 50-pip potential trade.
Entry shall be based on rejection at the close of the first hour after the Asian session commencement. target: 0.65600, right below the March low.
Entry TF: M15.
Weekly:
-we are bearish on the weekly.
-we actually picked up momentum toward the end of the month and printed a strong bearish momentum candle after 6-7 straight weeks of wicks to the upside on the weekly chart.
-this momentum candle is an indicator of orders getting filled and potential for more price action to push south.
H4:
-we broke structure to the downside on H4- but slightly. There is a shred of hesitation to heading farther down but the pair left us on a cliffhanger at the close of the April month.
NOTES:
-of great interest to me are two key lows: the April low which was printed on Friday (0.66736) and the March low (0.65643)- both of which remained untapped as we closed the month of April.
This trade is based on the premise that:
-we broke structure on the midrange (H1, if you will) to the downside, establishing a bearish picture at the week's open.
-we retraced to the 61.8% fib level and minor supply level that can be seen clearly on M15.
-Friday closed with a level of rejection at this minor supply
-the monthly lows at the aforementioned levels offer plenty of incentive for the pair to push into them
That being said, this is a 50-pip potential trade.
Entry shall be based on rejection at the close of the first hour after the Asian session commencement. target: 0.65600, right below the March low.
Entry TF: M15.
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.