AUD/USD - Short on the pullback
I've been following this pair for the last couple of weeks and I believe we have a strong short opportunity. The reasons for:
1) On the weekly time frame, price has been generally bearish with lower highs. We came up to test a key level of resistance at 0.7700 and rejected it countless times. These rejections produced long upper wicks across multiple candles which indicates selling pressure.
2) Our last rejection produced a bearish engulfing candle which also broke the long term weekly trend line.
3) EMA/MA crossover on the weekly chart.
4) On the daily chart, price broke another key level of previous support at 0.7450 and has now retested as resistance at the close of last week with a shooting star candle.
5) On the 4 hour chart, we've been down trending with lower highs and lows.
I have a small counter trend line placed on the 4 hour chart, if price breaks this trend line with an EMA/MA crossover to the downside, we will be in a good position to short.
1) On the weekly time frame, price has been generally bearish with lower highs. We came up to test a key level of resistance at 0.7700 and rejected it countless times. These rejections produced long upper wicks across multiple candles which indicates selling pressure.
2) Our last rejection produced a bearish engulfing candle which also broke the long term weekly trend line.
3) EMA/MA crossover on the weekly chart.
4) On the daily chart, price broke another key level of previous support at 0.7450 and has now retested as resistance at the close of last week with a shooting star candle.
5) On the 4 hour chart, we've been down trending with lower highs and lows.
I have a small counter trend line placed on the 4 hour chart, if price breaks this trend line with an EMA/MA crossover to the downside, we will be in a good position to short.