Hey, we have got a potential bat pattern forming on the AUDUSD, as we can clearly see it on the 4H chart, it is giving us an opportunity to short. I have tried to identify potential reversal zone which is highlighted by rectangle shape.
In terms of profit targets and stop losses, bear in mind that in longer time period it is been in downtrend, thus shorting means we re in trend direction which can give you aim for bigger targets. I ll be looking to take half of my profit at 38.2% fib lvl and then let it ride. Of course if we get filled on this potential trade opportunity. Stop losses go above X leg by 1xATR. Yours can be different as everyone has different risk appetite.
Thank you, Good luck with your trading in upcoming week. Sam