The AUDUSD is being wedged in by 3 separate long running trend lines. I believe the most likely scenario is a continuation of the long term downtrend. Price recently made an upward outbreak attempt but came back down immediately. This is a very long term trade so I'm talking about a very small lot size.
I see at least 2 ways to play this:
1) Sell at next bullish rally and wait 6 months.
2) Wait for a breakout and retest of the blue line, sell, wait 6 months.
This trade could be worth 700+ pips but it will take time. Any significant upward impulse will invalidate this trade for me. I will be taking a very small short position in the next week or so and then waiting for scenario #2 to play out to make a much larger entry (that will take several weeks most likely).
Thank you for looking!
-Brandon
I see at least 2 ways to play this:
1) Sell at next bullish rally and wait 6 months.
2) Wait for a breakout and retest of the blue line, sell, wait 6 months.
This trade could be worth 700+ pips but it will take time. Any significant upward impulse will invalidate this trade for me. I will be taking a very small short position in the next week or so and then waiting for scenario #2 to play out to make a much larger entry (that will take several weeks most likely).
Thank you for looking!
-Brandon