AUD/USD keeps on projecting bearish outlook so sell is currently the right signal for this pair. Here is the complete explanation.

Hello traders! I've been checking the AUD/USD pair since this morning and I was looking for a sell signal. The pair moved up aggressively during the Asian session but I think it was just a correction move. We know the pair is still under pressure and the wise thing to do is to follow the downtrend, but it's the matter of WHEN. Let's check the technical view of this pair:

audusd

Starting from the bigger picture, the AUD/USD pair on H4 chart shows that the selling pressure is still going, with a Doji candlestick pattern. Doji candlestick shows a warning signal for a trend reversal. Now, let's look at a lower time frame:

audusd

On Hourly TF, there is a bearish hidden divergence shown by MACD histogram. Again, this is a sell signal. Last one, let's check M15 chart:

audusd

There is a head and shoulder pattern on M15 chart. Those signals are enough for me to enter the trade. The price has not broken the neckline, but it has broken the trend line. I think it is still premature to enter the trade so we need to wait for the price to close below the neckline.

  • Position: SELL at 0.6880 (set a pending order)
  • SL & TP: SL at 0.6915 (35pips) & my PT is at 0.6830 (50pips)

I have set my pending order, I will just wait and see. Important note: Delete the pending order if the price moves higher than 0.6915 and doesn't close below 0.6880.

 

Happy trading!
RICO FY