AUDUSD Trade Setup

by: Colibri Trader

Dear followers,

The trade setup from last time started showing some positive signs. I managed to get into a short trade at 1.1982. It was just after the formation of the bearish engulfing pattern on the 4H.

I am currently monitoring this pair for some bullish signs, in case I went in a trade too early. It looks fine so far.

AUDUSD Trade Setup

Today’s trading idea is coming from the AUDUSD. I have spotted another very similar to the EURUSD pattern. There is a major resistance level 0.8050. The price could not hold above it.

The price action candle from Friday is a bearish rejection- pinbar. It looks like sellers might be ready to turn the tide.

A possible scenario would be to see price going slightly higher and then tumbling lower to the 0.7900-0.7800 area.

If I see that the price holds above the 0.8050 area and forms a bullish pattern, I will reconsider this potential trade.

For now it seems like the price will continue holding below the resistance level at 0.8050.

Happy Trading,

Colibri Trader

p.s.

Check out my recent article on EURUSD

or have a look at why I stick to What Works