Hello traders! If you read my latest trading journal, you know that I mentioned about looking for another signal to go long on AUDUSD pair. Well, I am checking my chart now and I think we have the signal.

Hello traders! If you read my latest trading journal, you know that I mentioned about looking for another signal to go long on AUDUSD pair. Well, I am checking my chart now and I think we have the signal.

You know this pair has been declining for the past days. In a bigger picture, the overall trend is still up because the price still can make higher lows, meaning the uptrend is still in control. However, the current trend is a downtrend but I think the price is showing that the trend is over. I am looking to buy this pair.

Let's check the AUDUSD pair on 4H chart. I drew two inner trendlines (red and black lines), and right now the price is sitting near these two inner trendlines. The price moved down and touched these trendlines and I call it as a pullback.

audusd

At the same time, there is Bullish Engulfing candlestick pattern too. This candlestick might indicate bullish reversal. Another thing to take into consideration to go long is the price broke the current down trendline, this might indicate the trend is over and a new trend is developing. Last, there is hidden bullish divergence too showed by MACD. All of these readings give us signal to go long.

  • Position: BUY
  • SL & TP: around 0.7170 & 0.7340

I will wait for the candlestick to close above this trendline on 4H chart (at 9AM this morning). If the candlestick is a bullish candlestick, I will enter the trade.

There will be news announcement at 8.30 this morning which may affect the AUDUSD pair. It is for Chinese Yuan. That is why we need to wait for the candlestick close at 9 just to make sure that the candlestick and overall trend will be bullish.

This might be my last trade before the long Christmas holidays. So I will hold this trade as long as possible, I will close it if I see any indication of reversal (go down). I will move my stop loss too if the situation allow me to do that.

 

Good Luck, Happy trading!
RICO FY