AUDUSD
After a sharp gain, AUDUSD approached a key resistance zone (around 0.7020), established on the 26th of October 2018.
Moreover, tomorrow (2nd July), there's going to be the RBA Interest Rate Decision of July, followed, as usual, by a statement from the governor of the Reserve Bank of Australia, Philip Lowe.
At its meeting of June, the Board decided to lower the cash rate by 25 basis points to 1.25 per cent. This boosted stocks in Sydney and weakened the Australian dollar. Some analysist are warning that Australia’s nearly three-decade run of recession-free growth could finally arrive to an end. Those moves could accelerate if the RBA does in fact lower rates further to 1 per cent.
Therefore, if this daily candle will close under 0.7, then the bearish engulfing pattern will be confirmed and I'll open a short position, with a stop loss of 0.705 and a take profit of 0.6835, a Risk/Reward (R) of 1:3.
If price will successfully reach that level, based on the momentum given by candles, I could decide to lower my take profit at 0.67875, with an ultimate R of 1:4.