AUDUSD Sell Idea

6 de ago. de 2023

Here is why I am intent in selling AUDUSD at the week's open:

Weekly:
-we have three consecutive weekly candles that make it clear that momentum is in favor
of the bears and they are currently dominating the market
-we closed the week as a doji, but one with clear momentum illustrated by the weekly candle
to the downside
-it is this momentum that I am counting on to be displayed as we start off the week and
carried into the first one or two days (Monday/Tuesday)
-we are, however, tapping into a previous zone of bullish orders that resulted in the market
pushing North to 0.69000 institutional level
-as such, I am keeping my expectation minimal as to a major bearish continuation on the
H1 swing to the downside and fairly expecting price to push North after the first test of current
lows

H4:
-we have been on a retracement journey for the better part of last week or toward the weekly
close
-I expect to sell the pair once we, at least, hit the golden zone for a target near 0% extension
-I do not expect a strong continuation, considering that we are at the weekly demand zone- hence shall not target the usual -27% extension of the recent swing on H4/H1 (they currently
share parameters)
-the Friday low at 0.65378 provides a potential spot for gathering liquidity, and so does the
weekly low at 0.65145
-I , however, expect us to protect the weekly low if a bull market is to ensue
-as such, I am keeping my target conservative at 0.65500

Midrange/H1
-currently, this time frame shares parameters with the H4 swing
-as such, I expect to sell around 0.66400 and target 0.65500 as illustrated on the M15 chart