AUD/USD: Waiting for more Continuation!
Hello, everybody, and welcome to my TradingView’s profile, my name is Gianni and today I’m going to analyse the asset, translating the market information by using a full technical analysis on different time frames, giving you a personal opinion about the next most likely market movement and helping you to spot and manage market opportunities.
My ideas are for those who are interested in improving their financial education and for those who are looking for new trading opportunities, according with their own strategies.
Weekly timeframe:
Daily timeframe:
4 hours timeframe:
Overall the market is still trending to the downside, currently in its corrective move.
As you can see on the daily timeframe, the price started retracing back after a strong bearish impulse, getting an interesting rejection just around the 0.50% of fibonacci retracement, usually an area where the price consolidates before its next movement. At the moment, switching on the 4hrs timeframe, the price formed a flag pattern and the possibility of market continuation is quite high!
When, where and why would I step into the market?
Considering a bearish perspective, I will be interested in short positions.
Before planning my trade, I will be waiting first for a breakout to the downside of this flag pattern, some consolidation (as a retest of the trendline) and a good entry point with a RRR of 1:2 or greater. A price consolidation after the breakout is important in this situation, because a breakout of a big pattern like the current one, rarely continues a trend with no retest and false breakout are typical! My stop loss will be placed just above the retest and the first take profit around the demand zone on 0.70000, with a possibility of some more continuation.
Only a valid breakout above the flag pattern would invalidate this trade idea and no action will be taken on this pair!
If you enjoy this trade idea, please support my work with a thumb up and don’t forget to follow my profile for more detailed market analyses!
Trade safe and responsibly,
Gianni
DISCLAIMER
Please note the views are not investment advice and should be used only for educational purpose
My ideas are for those who are interested in improving their financial education and for those who are looking for new trading opportunities, according with their own strategies.
Weekly timeframe:
Daily timeframe:
4 hours timeframe:
Overall the market is still trending to the downside, currently in its corrective move.
As you can see on the daily timeframe, the price started retracing back after a strong bearish impulse, getting an interesting rejection just around the 0.50% of fibonacci retracement, usually an area where the price consolidates before its next movement. At the moment, switching on the 4hrs timeframe, the price formed a flag pattern and the possibility of market continuation is quite high!
When, where and why would I step into the market?
Considering a bearish perspective, I will be interested in short positions.
Before planning my trade, I will be waiting first for a breakout to the downside of this flag pattern, some consolidation (as a retest of the trendline) and a good entry point with a RRR of 1:2 or greater. A price consolidation after the breakout is important in this situation, because a breakout of a big pattern like the current one, rarely continues a trend with no retest and false breakout are typical! My stop loss will be placed just above the retest and the first take profit around the demand zone on 0.70000, with a possibility of some more continuation.
Only a valid breakout above the flag pattern would invalidate this trade idea and no action will be taken on this pair!
If you enjoy this trade idea, please support my work with a thumb up and don’t forget to follow my profile for more detailed market analyses!
Trade safe and responsibly,
Gianni
DISCLAIMER
Please note the views are not investment advice and should be used only for educational purpose
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