AUDUSD - More USD Strength On The Horizon?
Analysis:
Price was in a period of consolidation failing to break higher or lower until recently where we saw a break to the downside, signalling to us to look for possible shorts. We've now seen a great opportunity that we're looking to enter into and that we want to share with you. We've got multiple confluences going in our favour which gives us more confidence behind this trade setup. Firstly we've got the market trend which is to the downside. You can see this by the lower lows and lower highs that price is making. Secondly we've got a retest of a previous strong area of support which we're now expecting to hold as resistance. At this level we also have the 50% fib level which we again expect sellers to be sat at wanting to push price down. Another factor that we have is the downwards trendline that we can see. This is another area that we would expect sellers to be sat at giving us all the more reason to enter short. Finally taking a look at the fundamentals the USD is quite strong at the moment making some big moves back to the upside compared to the AUD which is still relatively weak. In fact the AUD is the 3rd weakest major currency pair, which helps out short thesis. Due to all of the confluence factors that we have we see price making a push back to the downside from the area of resistance we have marked out.
Please feel free to leave any comments you have and like this idea if you agree with us. Any feedback or comments will be read. We appreciate it all.
Stay Safe - JPI
Disclaimer:
This does not constitute as financial advise. We are not responsible for any monetary loss that you endure. Trading is hard to be profitable with and we take losses just like everyone else does to. Our ideas won't always be correct which is why we urge you to always do your own analysis first before entering into the market but please feel free to use our analysis to assist you with yours.
Price was in a period of consolidation failing to break higher or lower until recently where we saw a break to the downside, signalling to us to look for possible shorts. We've now seen a great opportunity that we're looking to enter into and that we want to share with you. We've got multiple confluences going in our favour which gives us more confidence behind this trade setup. Firstly we've got the market trend which is to the downside. You can see this by the lower lows and lower highs that price is making. Secondly we've got a retest of a previous strong area of support which we're now expecting to hold as resistance. At this level we also have the 50% fib level which we again expect sellers to be sat at wanting to push price down. Another factor that we have is the downwards trendline that we can see. This is another area that we would expect sellers to be sat at giving us all the more reason to enter short. Finally taking a look at the fundamentals the USD is quite strong at the moment making some big moves back to the upside compared to the AUD which is still relatively weak. In fact the AUD is the 3rd weakest major currency pair, which helps out short thesis. Due to all of the confluence factors that we have we see price making a push back to the downside from the area of resistance we have marked out.
Please feel free to leave any comments you have and like this idea if you agree with us. Any feedback or comments will be read. We appreciate it all.
Stay Safe - JPI
Disclaimer:
This does not constitute as financial advise. We are not responsible for any monetary loss that you endure. Trading is hard to be profitable with and we take losses just like everyone else does to. Our ideas won't always be correct which is why we urge you to always do your own analysis first before entering into the market but please feel free to use our analysis to assist you with yours.
Trade active:
Price has pulled into our area and our order has been filled. Lets see if we were correct with our analysis!