AUDUSD hit a strong support area at around 0.70134. At the same time price broke out of the down trend line. I used the line chart to minimize market noise and this is how i found my bias for this trade. risk to reward 1;6
Price got to major resistance level on D1 and broke out of diagonal supporting trendline. looking for a pullback towards 1.27286 area that was a support and will now act as resistance before a continuation to the downside
The idea behind this trade,is that the market is in its corrective phase after that impulse an break of trendline.Price is currenctly rejecting off a previious major support, now acting as resistance. when drawing the fib,it also gives me a fib c retracement of 38.2%.
Breakout of ascending trendline with price reacting to 38.2% fibonacci retracement level forming possible A,B,C,D pattern. 70 pips stop loss with a 1:6 risk reward
Breakout of descending trendline and retest indicating change of market sentiment. 55 pips stoploss and possible take profit at previous weekly support level 1.61489. Risk reward 1 : 13
