AUD/USD Potential Short Entry 4HR Counter Trendline Fib Retrace

8 May 2019

After doing some techincal analysis on this pair and monitoring the movement. Last week we broke a key area of monthly support now resistance (0.70500). The buyer tried to retest this area with a huge engulfing candle but couldnt get enought momentum as price has moved downwards ever since and also tapped the 78.6% retracement. We can see a clear counter trendline forming and a slight head and shoulders formation. Not a perfect head and shoulders but a good enough confluence that this pair could see more downside. I would be waiting for a clear 4 hour break and close of this trendline with clear bearish price action and an EMA crossover. Waiting to see what the market does next.