AUDUSD_Short SetupHi guys and girls,
Aussie did make a high at around 0.7830 two months ago and but lose the upward trend to fall down to the low level of around 0.7156 (see my updated H1 TF chart). From that low level, Aussie performed quite well and reached the level of fibs retracement at 78.6%(0.76xx); Brexit referendum result costed Aussie a down of around -4.44% vs USD.
From the technical point of view that fall was still at the blue trendline support level and did try thereafter to reach the last peak, anyway it failed and was falling down and creating a gap. At the current price we can see that the price seems to be trying to fill the gap and to push Aussie back to the previous high levels, but I am the opinion that it is not the case, hence:
me but prefer to short Aussie at around the red box drawn price zone ( 0.7480-0.7490) with following conditions:
1) The candles at H1 will find the resistance there and make no newer higher highs at that resistance level,
2) and it will build new lower lows; I will enter my short from the second candle, if I see that sign.
Technical point of view Aussie needs to be down to get back to the drawn down ward channel in red lines, and from there I guess that a new upward momentum will be built and push Aussie vs USD upwardly.
S/l and T/p levels take a look at the chart as depicted. An aggressive s/l level will be around 60 pips with a reward of around 183 pips (3:1).
A conservative s/l will be at 0.7615.
Alternatively you can take your partial profits as depicted.
Trade well!
m2m
