AUDUSD has been Bearish on the H4 chart. Even on the daily chart, the price produced a Double Top. This means if the price starts going down, there is a huge possibility that it would go down for a long time. However, let’s think about the H4 chart now. Today’s first H4 candle was a Bullish one, and then the next one came out as a strong Bearish candle. That also made a breakout at yesterday’s lower low. This means if the level is held by the H4 candle, then we might get an opportunity to sell the pair later today. Let us have a look at the H4 AUDUSD chart.
Have a look at the Bearish H4 candle, which made a breakout at 0.75215. This level has to be held by an H4 candle. If the current H4 candle is held by the breakout level and it produces an H1 Bearish Engulfing Candle, then the price would reach 0.74500 without having that many pauses. Let us have a look at the summary of the trade…
- Entry- H1 Bearish Engulfing Candle at 0.75215
- Stop loss- Above 0.75380
- Take profit- 0.74500
- Validity: 72 hours
- Whenever possible, move the stop loss to the entry price and whenever you want, you can take profit anytime as long as you feel comfortable
The USD has two high impact news events at GMT 13.30. I assume the signal would either come at GMT 10.00 or GMT 11.00. If it comes just before the news event, then we might as well skip taking the entry. These two news events have the tendency to produce spikes on the intraday charts and sweep off the stop losses.
The post AUDUSD Price Action Analysis – 15th May 2018 appeared first on Advanced Forex Strategies.
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