AUDUSD has been very Bearish on the H4 chart. The pair took a massive Bearish move on the last Friday. Yesterday was a corrective day. However, today’s price action suggests that the pair might take another Bearish move if we get an H4 Bearish Engulfing candle and an H1 breakout afterwards at yesterday’s lower low. Let us have a look at the H4 AUDUSD chart.
AUDUSD Price Action Analysis – 14th August 2018
Have a look at today’s price action. The first and the second H4 candle came out as corrective candles. The current one seems to be a very Bearish. If this candle finishes as a Bearish Engulfing candle and we get an H1 breakout at the level of 0.72570, then selling the pair would get us some green pips. Let us have a look at the summary of the trade…
- Sell Stop Order: 0.72570
- Stop loss: 0.72845
- Take profit: 0.72140
- 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
On this chart setup, we might get the current H4 candle to make the breakout at the Resistance level as well. If this is the case, then we have to wait for another H1 candle to close below the H4 candle’s lower low. Only then, we should take the short entry. It is often seen that the H1 candle goes too far from the H4 candle’s close. If that is the case, then we should wait for a correction and a reversal on the intraday charts such as 15M, 30M, or HR1. In my opinion, the HR1 chart is the best intraday charts among rest of them.
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