AUDUSD is a forex instrument that has 5.4% of trading volume.
The Instrument has been in a falling wedge pattern and seems to continue its trend for some time.
It has touched the above trendline and might break the rectangle pattern to the downside. If it happens, it might give a violent move to the downside.
Once it breaks, wait for the retest, and then enter after the retest. It might be a nice trade with RR: 1:2.5.
Reasons:
Verdict:
Bearish if breaks downside.
Plan of action:
Short after downside breakout retest
The Instrument has been in a falling wedge pattern and seems to continue its trend for some time.
It has touched the above trendline and might break the rectangle pattern to the downside. If it happens, it might give a violent move to the downside.
Once it breaks, wait for the retest, and then enter after the retest. It might be a nice trade with RR: 1:2.5.
Reasons:
- If it breaks to the downside, it will also break VWAP to the downside, which might trigger the selling moment.
- RSI has already shown weak strength, and the trendline is broken to the downside in RSI.
- Price < 13 EMA < 200 EMA (Weak Trend)
- Bearish pattern formation for 3rd wave.
Verdict:
Bearish if breaks downside.
Plan of action:
Short after downside breakout retest
