After a couple of up days it looks like AUDUSD has run into and respected structure (upward resistance) on the daily chart at .7445ish. After bouncing off of that, support around .7413ish was broken to the downside but the next level of structure at .7374ish seems to be holding.
Looking left to previous structure we'll run into structure turned resistance at .7413ish. AUDUSD already blew through this level on the way down so who knows if it'll hold. Since we did break structure on the way down, though, I'm interpreting that as a bearish signal.
My trade is going to look like:
Entry @ .7417
Stop @ .7455
Profit @ .7373
My entry point is just above resistance because I'd rather not get filled than have a trade that's less than or equal to a 1:1 risk reward; this trade will have a 1:1.4 risk:reward ratio. Further, I found this entry point by using the Fibonacci retracement tool with my swing high @ .7444 and my swing low @ .7372.
What do you think is going to happen? Let me know in the comments!
Looking left to previous structure we'll run into structure turned resistance at .7413ish. AUDUSD already blew through this level on the way down so who knows if it'll hold. Since we did break structure on the way down, though, I'm interpreting that as a bearish signal.
My trade is going to look like:
Entry @ .7417
Stop @ .7455
Profit @ .7373
My entry point is just above resistance because I'd rather not get filled than have a trade that's less than or equal to a 1:1 risk reward; this trade will have a 1:1.4 risk:reward ratio. Further, I found this entry point by using the Fibonacci retracement tool with my swing high @ .7444 and my swing low @ .7372.
What do you think is going to happen? Let me know in the comments!
