Possible downtrend continuation. Opportunity to short the pair at current area of value whereby bearish engulfing candle coincides with 38% Fibonacci pullback, break of recent short term up trend during consolidation and resistance at 1.1261.
Potential to trade the bullish AUDUSD major pair should price break the indecision doji candle positioned on the 50% Fibonacci area of value following a recent period of retracement. Possible 1:3 risk to reward ratio should price reach the 100% Fibonacci extension level.
Suspected change in sentiment from bearish to bullish following consolidation, break of prior high and engulfing candle. Take profit sitting just above 100% Fibonacci extension achieves potential 1:3 RRR.
Trend continuation following period of retracement, large engulfing candle does not provide sufficient risk to reward ratio 1:3 hence open if price retraces to 50% of the engulfing candle. Take profit is 162% Fibonacci extension.