AUDUSD Trade Setup

 

by: Colibri Trader

Dear traders,

The trading setup from last time is still trading with a bit of hesitance. DAX (Germany 30) is in a major uptrend. When it comes to selling shorting in a bullish market, traders are more hesitant (including me). It was a very good price action pattern, but sometimes price is not enough supported by market participants’ trading decisions. Having said that, I am still in a mall short position, but might see another rise before/if price goes down. For now, I am not looking to add/reduce my position.

AUDUSD Trade Setup

Today’s trading setup is coming from the AUDUSD pair. I am looking at this pair and seeing a major support level. I am also seeing a price action confirmation. The daily candle is a bullish engulfing candle that has formed after a long-legged doji candle. This bullish confirmation after a hesitant candle is giving me green light for a long trade. If I decide to trade this pair, it will be after a small retracement towards 0.7475. My stop-loss would be placed just below 0.7425. My first target is the level of 0.7600. The secondary price target would be the level of 0.7750.

Happy Trading,

Colibri Trader

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