AUDUSD Trading Analysis

 

@Colibritrader

 

Dear traders,

I have been following the German Stock Market (DAX) during the last trading week.

DAX did not really confirm what I was looking for when I wrote about it HERE.

During the week it fell down to the nearest support level at 12450. On Friday it formed an inside bar

on the daily chart. I was waiting for a potential setup and shared my thoughts with you on my Twitter feed in a number of tweets.

It seems that my expectations were confirmed. There is also an inside bar on the daily chart. Now, I will be looking to possibly go long depending on how Monday opens.

AUDUSD Trading Analysis

Today, I am also looking at an FX pair. It seems like AUDUSD has formed a bear trap on the daily chart.

There is also a bullish engulfing candlestick pattern that formed on the daily chart. It is part of a three-bar formation, but is still valid.

I will be looking for a retracement towards the 0.7400 area before taking any action. If I see a confirmation from the 4H chart as detailed in my trading course I will possibly go long.

There is a major support-turned-resistance level at 0.7500, so I will be extremely careful when price approaches it. It might be a false bear trap and if we see a bullish rejection at this level on the daily chart we might see price continuing its downfall.

Therefore, be careful around the 0.7500 area. The weekly candlestick pattern is a bearish rejection pinbar-like pattern, which gives even further confirmation that we might see a reversal.

Happy Trading and happy Sunday!

Colibri Trader

p.s.

Check out my recent article on Archery and Trading