AUDUSD Near 1st Resistance, Yay or Nay for bulls? Long to 0.714!
AUDUSD has broken the 0.70000 and persisted above the 0.71100+ levels. Nearing its first resistance of 0.71400+, will it be able to break it or will it come crashing down?
There will be multiple factors that will determine whether or not this is a true breakout or a false breakout (TA wise):
1. Volume - will the volume be relative enough to be able to pump AU up?
2. Gartley - using the 1D TF, AU shows a bullish gartley pattern which is indicative of a pump; moreover, the TP area is possible to be 0.72 or higher.
3. Head & Shoulders - however, it should be taken into consideration that the overall daily timeframe also shows a H&S pattern wherein we are already nearing the neckline so the next few days will be critical on whether or not AU will be able to have a trend breaking long or it will come crashing down to 0.66+ levels or even lower.
4. AU's tendency to not follow the trend - if you try to go back, you will notice that the ascending channel is bullish whereas the descending channel is bearish. Basically, AU's trends are opposite of what its regular function should be.
As a scalper, is it ideal to enter now and short? No. Wait until it hits its first resistance then feel free to short until 0.70800+ levels to minimize losses should a cut-loss ensue. It is also important to take note that should 0.70+ breakdown, you can put your trail stop at 0.70800 then continue to short down to 0.69500+ levels.
Disclaimer: This is for educational purposes only.
There will be multiple factors that will determine whether or not this is a true breakout or a false breakout (TA wise):
1. Volume - will the volume be relative enough to be able to pump AU up?
2. Gartley - using the 1D TF, AU shows a bullish gartley pattern which is indicative of a pump; moreover, the TP area is possible to be 0.72 or higher.
3. Head & Shoulders - however, it should be taken into consideration that the overall daily timeframe also shows a H&S pattern wherein we are already nearing the neckline so the next few days will be critical on whether or not AU will be able to have a trend breaking long or it will come crashing down to 0.66+ levels or even lower.
4. AU's tendency to not follow the trend - if you try to go back, you will notice that the ascending channel is bullish whereas the descending channel is bearish. Basically, AU's trends are opposite of what its regular function should be.
As a scalper, is it ideal to enter now and short? No. Wait until it hits its first resistance then feel free to short until 0.70800+ levels to minimize losses should a cut-loss ensue. It is also important to take note that should 0.70+ breakdown, you can put your trail stop at 0.70800 then continue to short down to 0.69500+ levels.
Disclaimer: This is for educational purposes only.