AUDUSD - BEARISH SETUP

ANALYSIS 🔎
- AUDUSD was bounded in the rising wedge (RW) pattern.
- A rising wedge pattern is a bearish reversal pattern.
- RSI printed a bearish divergence signal (BDS).
- The market brokedown below the rising wedge's (RW) support as expected from the bearish confluence.
- The market then retraced for a retest of the rising wedge (RW) support and and the key fibonacci retracement zone (0.5 - 0.618 - 0.786).
- There's a relatively high concentration of sellers (high selling pressure) at the retest zone.
- The retracement is supported by the ascending trendline support (ATS).
- Breakdown below the ascending trendline support (ATS) will lead to the formation of the head and shoulders (H&S) pattern.
- The head and shoulders (H&S) pattern is a bearish reversal pattern.
- Further breakdown below the head and shoulders (H&S) neckline support (NS) will lead to a test of the horizontal support levels (S1, S2).

SELL ENTRY ⬇️
- Breakdown below the ascending trendline support (ATS).

TARGETS 🎯
- Head and shoulders (H&S) neckline support (NS).
- Horizontal support level (S1).
- Horizontal support level (S2).

SETUP INVALIDATION ❌
- Breakout above the 1.0 fibonacci retracement level.