AUDUSD W1 over bought and diverging
Fed QE hopes has provided a good opportunity to short the AUDUSD.
2 weeks ago price closed just below the upper trend line from 24/7 and 5/2 with a candlestick doji followed by a bearish engulfing candle.
ADX is showing no trend so use of the Stochastics indicates overbought levels with bearish divergence, further supporting this trade.
I have personally taken a short position @ 1.052 with a stop @ 1.064 which is above the 3 week high and trend line resistance.
My target is @ 1.028 where we have 20,50,100 SMA confluence providing a R/R of 1:1.85
Second and Third targets would be at parity and the lower trend line respectively.
2 weeks ago price closed just below the upper trend line from 24/7 and 5/2 with a candlestick doji followed by a bearish engulfing candle.
ADX is showing no trend so use of the Stochastics indicates overbought levels with bearish divergence, further supporting this trade.
I have personally taken a short position @ 1.052 with a stop @ 1.064 which is above the 3 week high and trend line resistance.
My target is @ 1.028 where we have 20,50,100 SMA confluence providing a R/R of 1:1.85
Second and Third targets would be at parity and the lower trend line respectively.
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