FX CHART OF THE DAY: AUDUSD SHORT TRADE (DOWNTREND RISK)
Price is trading below but close to lower 1st standard deviation from weekly (120-hour) mean amid expanding volatility, which hinds that it has a bias to break down further and enter a leg of a downward move.
The leg will be confirmed if price breaks relevant lows (at approx 0.73400).
Thus purely on technical basis it is a good idea now to take a short position close to the lower 1st standard deviation from 120-hour mean (0.73550) with a stop level at the mean (0.73800)
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Traders should also consider news events coming out 14:00 GMT (US NEW HOME SALES), which can trigger unexpected price volatility on AUDUSD.
The leg will be confirmed if price breaks relevant lows (at approx 0.73400).
Thus purely on technical basis it is a good idea now to take a short position close to the lower 1st standard deviation from 120-hour mean (0.73550) with a stop level at the mean (0.73800)
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Traders should also consider news events coming out 14:00 GMT (US NEW HOME SALES), which can trigger unexpected price volatility on AUDUSD.