AUDUSD has been on an uptrend all day on Thursday, this trend was broken during the Asian session on Friday. To confirm that the trend was broken it hit the 1H Supply Zone and retested the trend line. Right before the London session it seemed to have formed some support at the 0.65455 level then it retraced back to the 1H Supply Zone and created a large bearish engulfing candle on the 15M which also showed a double top candlestick pattern. I then entered the trade on the break of candle on the 3:15am EST engulfing candle. I placed my stop loss right above the supply zone and entered the trade with a profit target of .65270. I chose this level due to it being a strong demand level and I thought it seemed like a lot of resting liquidity was there. Although on the chart I have the profit target as .65100 I did not hold the trade that long due to me not wanted to get chopped during after the NY AM session. I'm still practicing trusting my full analysis and holding trades for the entire duration I originally project. On this chart I also drew up other demand zones in which I was expecting a large reaction at. All 3 zones played out but it did not disturb the trade because the overall trend (1H) was on a downtrend. Its important to always remember to have time frame correlation when taking trades and always remember to follow the higher timeframe trend. Personally I feel like AUDUSD will continue this downtrend and possibly gap down to .65 during either Sunday night open or sometime during the London session.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.