Dear traders,

The trading analysis from last time did not give us a chance to profit from a short position.

The price quickly retraced back and instead of bearish, gave us a bullish trading signal.

We managed to take advantage of it in the trading room, but cut the trading position too quickly.

Indices are still looking more bullish than bearish.

But today, I am going to share with you another potential bullish trading setup that I have just spotted.

AUDUSD Trading Analysis for 08.02.2021

Today, I am looking at the AUDUSD currency pair.

There is a major demand zone and price is acting as I would love to see it acting in such a zone.

There is a bullish engulfing pattern that formed on the daily chart.

This, in combination with the major zone does give me the green light for a potential long trade.

What I will be looking for is a small retracement back to the level of 0.7640.

Then, ideally I would like to see a bullish candlestick pattern and then go long.

If price breaks below the 0.7640 level and stays there, there will be a chance of further declines.

That is it in a nutshell.

Good luck and happy trading,

Colibri Trader