Good Morning Traders
Looking on the 60 minute timeframe, price has recently retraced in a 3-wave pattern from the recent high (0.714) into the 61.8% retracement. Adding to the set of confluences is the RSI indicator which currently nears overbought territory. Where price currently sits at is a perfect level to enter for a sell, providing an adequate risk/reward of 2.7
It should also be considered where the AUD/USD price scales up on the larger timeframes. For example, looking on the Daily timeframe, the AUD/USD sits at the top of the channel structure and with increasing likelihood for a dollar correction, this trade should be closely considered as an opportunity to ride the market down to the lows of the channel, around the 0.70060 level.
Please use the projected risk/reward as a guide
Updates will follow.
Ike. @BrightForex
Looking on the 60 minute timeframe, price has recently retraced in a 3-wave pattern from the recent high (0.714) into the 61.8% retracement. Adding to the set of confluences is the RSI indicator which currently nears overbought territory. Where price currently sits at is a perfect level to enter for a sell, providing an adequate risk/reward of 2.7
It should also be considered where the AUD/USD price scales up on the larger timeframes. For example, looking on the Daily timeframe, the AUD/USD sits at the top of the channel structure and with increasing likelihood for a dollar correction, this trade should be closely considered as an opportunity to ride the market down to the lows of the channel, around the 0.70060 level.
Please use the projected risk/reward as a guide
Updates will follow.
Ike. @BrightForex